Be VERY careful to read what you sign!!

[FarmRanger]

I'd be curious as to the legality of a contract that
allows one side to breach the fundamental terms
of the contract. Effectively, it removes the ability
of the farmer to realize any benefit from the
contract at the sole discretion of the company.

I was told that a contract has to have
consideration for both sides. If the consideration
for one side is revokable without penaltyor
needing a reason, is it really consideration?

[hobbyfrmr]

Farmranger it should be that way,
but.....ultimately it is what you sign your name
to. As you suggest we have to read the contract
and think abot what we are agreeing to.

[FarmRanger]

Update:

The company removed the offending portions, added an act of God clause, therefore I'm going to sign a contract that's fair for me too.

[Oliver88]

Thanks for the heads up Farm Ranger.

Was this a broker or a large grain company?

[Hopperbin]

I take it the 75 dollars per ton in damages was removed when adding the act of god clause. Did the contracted price come down also? Great you read the contract I wonder what percentage of growers would ignore the fine print.
We owe it to you, hopefully your deal will become standardized. Typically been only growing soft wheat and canola lately so those contracts are pretty basic, malt is one to be careful with for sure. So how did everyone make out last year that signed unpriced production contracts? Price wise? Around here the barley was mostly shit so could sell as feed anywhere, but not easy selling light. Been a while since grew malt but like to get back in, waiting another year as not much malt out of this area lately. Strange as in the past some of us have claimed around 90 percent success rate.

[FarmRanger]

Yes, it was a malt company, and yes they did drop the $75/tonne penalty. That penalty in itself wouldn't have been objectionable if it would only be applied when the farmer decides to renege on the contract in the case of the price has going up later.
I was very impressed that the company would change their contract. Once they understood my objections and why they weren’t unreasonable, the contract was changed to a very favorable one. No yelling, paranoia or disrespect was required to get them to understand.
Moral of the story: read your contracts and don’t assume that you have to sign a bad contract to get a contract. For the most part, businesses aren’t operated by bad guys, they’re just folks that want to run things profitably but fairly, just like us farmers. (I know there are exceptions on both sides, but it pays to assume the best intentions, and prepare for the worst ones).