9Minimum terms of horticulture produce agreement

9 Minimum terms of horticulture produce agreement

Requirements of horticulture produce agreement (1) A horticulture produce agreement must: (a) be in writing; and (b) be signed by the parties to it; and (c) specify the matters set out in subclauses (2), (3) and (4) as appropriate. General matters (2) The agreement must specify: (a) whether the trader is trading as an agent or a merchant under the agreement; and (b) the requirements (if any) the trader has in respect of delivery of produce to the trader by the grower; and (c) the circumstances (if any) in which the trader may reject horticulture produce delivered by the grower, including the period, after receiving the produce, during which the trader must notify the grower of the rejection and the consequences of the rejection; and (d) the periods within which information must be given for the purposes of subclause 13 (4); and (e) the trader’s insurer (if any) for horticulture produce covered by the agreement, the matters covered by the insurance, and the maximum amount of claims covered by the insurance; and (f) the process for varying the agreement; and (g) if the agreement is only to operate for a limited time—the term of the agreement; and (h) any quantity and quality requirements relating to horticulture produce covered by the agreement; and (i) how the trader deals with horticulture produce, provided by the grower under the agreement, that does not meet specified quality or quantity requirements; and (j) the contact details of the person that the grower should contact in the event of a dispute with the trader under the agreement or this code; and (k) the contact details of the person that the trader should contact in the event of a dispute with the grower under the agreement or this code (l) the process for terminating the agreement. Matters for agents (3) If the trader is trading under the agreement as an agent the agreement must specify: (a) the period within which the agent will pay to the grower the proceeds of a sale of the grower’s produce by the agent; and (b) the reporting period for the agreement (see clause 20); and (c) the period after the end of the reporting period during which a statement must be given to a grower for the reporting period (see clause 20); and (e) if payment by the grower of any commissions, fees and extra costs is contingent on the sale of the horticulture produce or any other event; and (f) if commission and agent’s fees are charged on a percentage basis, fixed basis, or any other basis and specify the amounts or rates of the commissions and fees; and (g) if the agent will pursue payment for bad debts of the grower arising under the agreement; and (h) if the grower will have a role in pursuing bad debts of the grower. Matters for merchants (4) If the trader is trading under the agreement as a merchant the agreement must specify: (a) if the price of horticulture produce will be agreed before or upon delivery of the produce to the merchant; and (b) the period within which the merchant will pay the grower for the purchase of the grower’s produce; and (c) the reporting period for the agreement (see clause 28); and (d) the period after the end of the reporting period during which a statement must be given to a grower for the reporting period (see clause 28). Other matters (5) The agreement may contain such other terms and conditions (if any) not inconsistent with this code as are agreed between the trader and the grower.