Beef is raised in three phases before it is processed: calves are raised on pasture and range land, as feeder cattle they feed on pasture, crop residue, and range land, and finally they go to feedlots, where they are fattened for slaughter. Feeder contracts are a type of futures contract based on young cattle that are sent to feedlots in preparation for slaughter. The Chicago Mercantile Exchange first introduced a feeder cattle contract in 1971.
It is important make sure the agreement is clear as to whether a bailment or an actual sale of the animals is intended. In order to constitute a bailment and not a sale, a fattening or raising agreement should provide that the owner agrees to provide the animals involved to the feeder with the owner retaining title to the animals, and the feeder or raiser is to feed or raise them for sale as the owner deems proper. This form is a sample of a sale rather than a bailment.
Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and maintenance of cattle. This contract is specifically designed for individuals or businesses based in Phoenix, Arizona, who are involved in the cattle feeder industry. A Purchase and Maintenance Agreement for Cattle — Feeder Contract in Phoenix, Arizona, typically includes key provisions such as: 1. Parties Involved: Clearly identifies the buyer and seller involved in the agreement, along with their contact information and legal representation, if applicable. 2. Details of the Cattle: Describes the cattle being purchased, including breed, age, weight, health condition, and any specific identification marks or tags. 3. Purchase Price and Payment Terms: Specifies the agreed-upon purchase price for the cattle and outlines the payment terms, such as installment payments or a lump sum, as well as the due dates. 4. Delivery and Inspection: Outlines the logistics and responsibility for transporting the cattle from the seller to the buyer's premises. It includes provisions for thorough inspection of the cattle upon delivery to ensure compliance with agreed-upon standards and any necessary rejections or adjustments. 5. Maintenance Obligations: Sets forth the responsibilities of the buyer regarding the proper maintenance, feeding, and care of the cattle, including provisions for veterinary care, health treatments, vaccinations, and nutrition. 6. Risk of Loss: Determines the risk of loss in case of death, theft, or damage to the cattle, and specifies which party bears the responsibility and any associated compensation or insurance requirements. 7. Duration of Agreement: States the duration of the agreement, specifying the start and end dates, with the option for renewal or termination clauses. 8. Breach and Dispute Resolution: Addresses the consequences of a breach of the contract by either party and outlines the steps for dispute resolution through mediation, arbitration, or litigation. Different types of Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contracts may include variations based on specific circumstances or additional provisions such as: — Escrow Agreements: If a third-party escrow agent is involved in overseeing the financial transactions and ensuring compliance with payment terms. — Exclusive Purchase Rights: When the buyer is granted exclusive rights to purchase cattle from a specific feeder or seller within a defined period. — Services Agreements: If additional services are provided by either the buyer or seller, such as transportation, feed supply, or genetic testing, these services can be included in the agreement. — Lease-to-Buy Agreements: In cases where the buyer wishes to lease the cattle initially before eventually purchasing them outright. — Performance Incentives: When the buyer or seller incorporates performance-based incentives or penalties related to the growth rate, feed conversion ratio, or other measurable metrics. Overall, a Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract serves as a comprehensive framework to ensure a smooth and mutually beneficial relationship between buyers and sellers in the cattle feeder industry within the Phoenix, Arizona area.Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and maintenance of cattle. This contract is specifically designed for individuals or businesses based in Phoenix, Arizona, who are involved in the cattle feeder industry. A Purchase and Maintenance Agreement for Cattle — Feeder Contract in Phoenix, Arizona, typically includes key provisions such as: 1. Parties Involved: Clearly identifies the buyer and seller involved in the agreement, along with their contact information and legal representation, if applicable. 2. Details of the Cattle: Describes the cattle being purchased, including breed, age, weight, health condition, and any specific identification marks or tags. 3. Purchase Price and Payment Terms: Specifies the agreed-upon purchase price for the cattle and outlines the payment terms, such as installment payments or a lump sum, as well as the due dates. 4. Delivery and Inspection: Outlines the logistics and responsibility for transporting the cattle from the seller to the buyer's premises. It includes provisions for thorough inspection of the cattle upon delivery to ensure compliance with agreed-upon standards and any necessary rejections or adjustments. 5. Maintenance Obligations: Sets forth the responsibilities of the buyer regarding the proper maintenance, feeding, and care of the cattle, including provisions for veterinary care, health treatments, vaccinations, and nutrition. 6. Risk of Loss: Determines the risk of loss in case of death, theft, or damage to the cattle, and specifies which party bears the responsibility and any associated compensation or insurance requirements. 7. Duration of Agreement: States the duration of the agreement, specifying the start and end dates, with the option for renewal or termination clauses. 8. Breach and Dispute Resolution: Addresses the consequences of a breach of the contract by either party and outlines the steps for dispute resolution through mediation, arbitration, or litigation. Different types of Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contracts may include variations based on specific circumstances or additional provisions such as: — Escrow Agreements: If a third-party escrow agent is involved in overseeing the financial transactions and ensuring compliance with payment terms. — Exclusive Purchase Rights: When the buyer is granted exclusive rights to purchase cattle from a specific feeder or seller within a defined period. — Services Agreements: If additional services are provided by either the buyer or seller, such as transportation, feed supply, or genetic testing, these services can be included in the agreement. — Lease-to-Buy Agreements: In cases where the buyer wishes to lease the cattle initially before eventually purchasing them outright. — Performance Incentives: When the buyer or seller incorporates performance-based incentives or penalties related to the growth rate, feed conversion ratio, or other measurable metrics. Overall, a Phoenix Arizona Purchase and Maintenance Agreement for Cattle — Feeder Contract serves as a comprehensive framework to ensure a smooth and mutually beneficial relationship between buyers and sellers in the cattle feeder industry within the Phoenix, Arizona area.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
