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UNIDROIT/FAO/IFAD Legal Guide on Contract Farming












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    One of the main challenges to successful contract farming in a number of developing countries is the absence of strong legal systems that guarantee an adequate protection to the parties in their contractual relations. The general principles of contract law discussed in this brief, applicable to international commercial contracts, may serve as a model to help overcome this difficulty.
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    This document is primarily a synthesis of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming. It is a comprehensive document that considers contract farming from the viewpoint of private law and seeks to provide guidance concerning the design and implementation of sound contracts, thereby generally contributing to building a conducive environment for contract farming. The publication does not intend to cover all possible agricultural contracts. Its scope is limited to the bilateral relationsh ip between producer(s) and a contractor through contract farming. This involves parties entering into a contract that could be established for a fixed term, for one production cycle, for several or many cycles or years, or for an indefinite period. The document aims to provide advice to promote harmonious relations among all parties involved in contracts and those advising them.
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    Contract farming: Legal considerations on contractual design and enforcement 2017
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    Contract farming can be defined as agricultural production carried out according to an agreement between farmers and a buyer which establishes conditions for the production and marketing of a farm product. To be binding and enforceable, such agreements depend not only on good contractual design, but also on the existence of an adequate legal framework. This brief aims to illustrate some of the legal issues involved in the design, negotiation and enforcement of farming contracts.

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