Introduction

AgriChain allows users to create three kinds of contracts:

• Commodity Contract: A formal and legally binding agreement that records the sale and purchase of grain between two parties
• Broker Note: A Broker's record of a contract that they have entered into on behalf of their Grower and sent to the Buyer.
• Sales Confirmation: A sales confirmation is a document that records the buyer’s agreement to the terms of the sale, confirming the details outlined in the contract, such as quantity, price, delivery date, and other conditions.

To create Contract [Refer Article]

In the Contract Creation Form, Users Can Add the Following Details

• GENERAL 
  • Quick Contract: AgriChain enables you to save quick contract templates that can be used to auto-populate commonly used details. This allows you to create a contract in approximately 20 seconds. Additionally, you can also select your last 5 created contracts from this list to auto-populate the details.
    • Refer article: Save/Use a Quick Contract Template
  • Document Type: Defines whether you're creating a Commodity Contract, Broker Note, or Sales Confirmation.
  • Identifier/Contract/Broker Note/Sales Confirmation Number: A unique identification number that is automatically generated. This number can be edited only at the time of contract creation, also it must NOT have been used previously by any other user on the platform.
• COUNTERPARTIES
  • Seller Name: The name of the company selling the commodity.
  • Seller Contact: The contact person for the seller company.
  • Seller NGR: The NGR number nominated by the seller company.
  • Buyer Name: The name of the company buying the commodity.
  • Buyer Contact: The contact person for the buyer company.
  • Buyer NGR: The NGR number nominated by the buyer company.
• CONTRACT DETAILS
  • Contract Type: This can be Fixed Grade, Multi Grade, Floating Multi Grade, or Area contracts.
  • Tonnage: The total metric tonnes (MT), cubic metre (m3), or number of bales, of commodity being bought/sold.
  • Variety: The variety of the commodity being bought/sold.
  • Season: The season of the commodity being bought/sold.
  • Grade: The grade of the commodity being bought/sold.
  • Price: The price per MT / m3 / bales of the commodity being bought/sold.
  • Price Point: The price point of the commodity being bought/sold.
    • Refer article: Definitions on Price Points in Commodity Contracts
  • Track: The track that applies to the contract.

Multi Grade and Blended Grade Contract Workflows

Multi Grade Contracts

Used when a contract covers multiple varieties and grades across a set quantity.

• Select Contract Type = Multi Grade

• You will be prompted to add multiple grade blocks, each with variety, grade, and tonnage.

• Ensure that the total tonnage matches the sum of individual grade blocks.

• Continue as per standard contract steps.

Blended Grade Contracts

Used when multiple varieties are blended to meet a desired spec.

• Select Contract Type = Blended.

• Add underlying grades/varieties with their respective ratios or target specs.

• You may use a Single Price for the contract or define prices for each grade. 

• Complete the remaining contract fields and submit.

• CONSIGNMENT DETAILS
  • Consignor Name: The consignor company's site that the commodity will be picked up from.
  • Pickup Site: The site that the commodity will be picked up from.
  • Consignee Name: The consignee company's site that the commodity will be delivered to.
  • Delivery Site: The site that the commodity will be delivered to.
• TERMS AND RESPONSIBILITIES
  • Delivery Onus: The counterparty responsible for the actual delivery/freight activities of the commodity.
  • Payment Scale: The payment scale (adjustment) to the commodity price. 
  • Payment Terms: The payment terms, when payment is due, for the contract.
  • Tolerance: The allowable tolerance against the quantity of the commodity being bought/sold.
  • Conveyance: The counterparty with the authority to call on the delivery of the commodity. 
  • Inspection: The point used to inspect the commodity and confirm that its specifications are compliant with the terms of the contract.
  • Weight: The point used to inspect the commodity and confirm that its delivery weight is compliant with the terms of the contract.
  • Packaging: Defines whether the commodity is being transported in bulk or bags.
  • Market Zone: The market zone relating to the commodity.
  • Region: The region within the market zone relating to the commodity.
• DELIVERY DETAILS
  • Delivery Start Date: The start date for the delivery of the commodity.
  • Delivery End Date: The end date for the delivery of the commodity.
• CARRY DETAILS
  • Rate: The chargeable rate to carry (store) the commodity.
  • Frequency: The charging frequency of the carry rate that will be charged.
  • Start Date: The start date that the carry rate will be charged from.
  • End Date: The end date that the carry rate will be charged to.
• CONTRACT CONDITIONS
  • General Conditions: Overarching conditions that could be applied to many contracts (e.g. GTA Trade Rules and Dispute Resolution).
  • Special Conditions: Unique conditions that are applied to specific contracts (e.g. Deliveries must occur between 8.30am to 10.30am on Weekdays only).
• VALUATIONS: Automatically calculated values based on the details of the contract.
• BROKERAGE
  • Payable By: The counterparty responsible for paying the brokerage rates that will be charged for the creation of the contract.
  • Charged At: The time period at which the brokerage rates will be charged.
  • Fee Type: The mechanism for calculating the brokerage rate.
  • Rate: The brokerage rate payable / to be charged.
  • Total Fee: The automatically calculated brokerage rate based on the Fee Type and Rate.
• ADMIN
  • Contract Invoicing: The counterparty responsible for invoicing the Buyer.
  • Brokered By: The name of the company responsible for brokering the contract.
  • Broker Contact: The contact person of the broker company.
  • Notes: Additional notes can be entered and stored against the contract's Audit History. These notes will only be visible to employees within your company.