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.
San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract: A Detailed Description Introduction: The San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and ongoing maintenance of cattle in the San Diego area. This contract ensures a mutually beneficial agreement between the buyer and the feeder, providing clarity and protection for both parties involved. Key Components of the Contract: 1. Identification of Parties: The contract begins with the complete identification of the buyer and the feeder, including their legal names, addresses, contact information, and any relevant business details. 2. Purchase Terms: The purchase terms section defines the specifics of the cattle to be bought, including quantity, breeds, weight, age, and any additional specifications. The agreed purchase price, payment terms, and any applicable taxes are also outlined here. 3. Maintenance Obligations: This section lays out the responsibilities of the feeder in terms of properly caring for the cattle, including feeding, housing, vaccinations, and veterinary care. The precise feeding schedule and diet requirements are mentioned, ensuring the well-being and health of the cattle. 4. Term of Agreement: The contract states the duration of the agreement, specifying the start and end dates. The parties may opt for a fixed term or an ongoing agreement subject to renewal. 5. Insurance and Liability: The contract addresses matters related to insurance coverage for cattle and any liabilities that may arise during their care. It is crucial to determine who is responsible for unforeseen circumstances, such as accidents, natural disasters, or diseases. 6. Termination Clause: In cases where termination becomes necessary, this section outlines the conditions and procedures for ending the agreement. It may include specific circumstances for termination, notice periods, and any associated penalties or reimbursements. 7. Governing Law and Jurisdiction: This clause specifies the legal framework that governs the agreement and clarifies the jurisdiction in which any disputes will be resolved. Types of San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract: 1. Standard/General Contract: This is the most common type of contract that covers the essential aspects of purchasing and maintaining cattle in San Diego, California. It includes standard clauses and provisions that are applicable to most agreements. 2. Specialty Contracts: Depending on the specific requirements or unique circumstances, there may be specialized contracts. These can cover aspects such as organic feeding, specific breeds, pasture-raised cattle, or contracts for the purchase and maintenance of show animals. Conclusion: The San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that establishes the terms and conditions for the purchase and ongoing maintenance of cattle. By providing a clear understanding of the responsibilities and expectations, this contract facilitates a smooth and secure transaction between the buyer and the feeder.San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract: A Detailed Description Introduction: The San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a legally binding document that outlines the terms and conditions for the purchase and ongoing maintenance of cattle in the San Diego area. This contract ensures a mutually beneficial agreement between the buyer and the feeder, providing clarity and protection for both parties involved. Key Components of the Contract: 1. Identification of Parties: The contract begins with the complete identification of the buyer and the feeder, including their legal names, addresses, contact information, and any relevant business details. 2. Purchase Terms: The purchase terms section defines the specifics of the cattle to be bought, including quantity, breeds, weight, age, and any additional specifications. The agreed purchase price, payment terms, and any applicable taxes are also outlined here. 3. Maintenance Obligations: This section lays out the responsibilities of the feeder in terms of properly caring for the cattle, including feeding, housing, vaccinations, and veterinary care. The precise feeding schedule and diet requirements are mentioned, ensuring the well-being and health of the cattle. 4. Term of Agreement: The contract states the duration of the agreement, specifying the start and end dates. The parties may opt for a fixed term or an ongoing agreement subject to renewal. 5. Insurance and Liability: The contract addresses matters related to insurance coverage for cattle and any liabilities that may arise during their care. It is crucial to determine who is responsible for unforeseen circumstances, such as accidents, natural disasters, or diseases. 6. Termination Clause: In cases where termination becomes necessary, this section outlines the conditions and procedures for ending the agreement. It may include specific circumstances for termination, notice periods, and any associated penalties or reimbursements. 7. Governing Law and Jurisdiction: This clause specifies the legal framework that governs the agreement and clarifies the jurisdiction in which any disputes will be resolved. Types of San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract: 1. Standard/General Contract: This is the most common type of contract that covers the essential aspects of purchasing and maintaining cattle in San Diego, California. It includes standard clauses and provisions that are applicable to most agreements. 2. Specialty Contracts: Depending on the specific requirements or unique circumstances, there may be specialized contracts. These can cover aspects such as organic feeding, specific breeds, pasture-raised cattle, or contracts for the purchase and maintenance of show animals. Conclusion: The San Diego California Purchase and Maintenance Agreement for Cattle — Feeder Contract is a comprehensive legal document that establishes the terms and conditions for the purchase and ongoing maintenance of cattle. By providing a clear understanding of the responsibilities and expectations, this contract facilitates a smooth and secure transaction between the buyer and the feeder.
