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.
A Delaware 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 by a feeder, specifically in the state of Delaware. This agreement serves as a comprehensive contract between the buyer (feeder) and the seller (cattle owner). Keywords for this agreement include Delaware, purchase, maintenance, agreement, cattle, feeder contract, terms and conditions, buyer, seller. There may be different types of Delaware Purchase and Maintenance Agreements for Cattle — Feeder Contracts depending on specific variations in terms or clauses that are included. Some possible variations or types of this agreement may include: 1. Delaware Purchase and Maintenance Agreement for Cattle — Feeder Contract with Price Adjustment Clause: This type of agreement includes a clause that allows for potential future adjustments in the purchase price of the cattle based on market conditions or specified factors. 2. Delaware Purchase and Maintenance Agreement for Cattle — Feeder Contract with Exclusive Supplier Clause: In this agreement, the seller agrees to exclusively supply the cattle to the buyer for a specified period or number of cattle, ensuring a steady business relationship. 3. Delaware Purchase and Maintenance Agreement for Cattle — Feeder Contract with Maintenance Responsibilities Clause: This type of agreement clearly outlines the maintenance responsibilities of both parties, including feed, healthcare, vaccinations, and any other necessary care for the cattle during the agreed-upon period. 4. Delaware Purchase and Maintenance Agreement for Cattle — Feeder Contract with Early Termination Clause: This agreement includes a clause stating the conditions and penalties for termination of the contract before the agreed-upon period. It may specify circumstances such as breach of contract or failure to meet certain obligations. 5. Delaware Purchase and Maintenance Agreement for Cattle — Feeder Contract with Payment Schedule Clause: This type of agreement contains a detailed payment schedule, outlining when and how the buyer will make payments to the seller, ensuring clear expectations and a smooth financial transaction. These are just a few examples of the potential variations or types of Delaware Purchase and Maintenance Agreements for Cattle — Feeder Contracts. It is important to carefully review and tailor the agreement to the specific needs and requirements of the buyer and seller involved in the cattle transaction.
