Whether a farmer can refer to force majeure for non-fulfillment of forward contracts, explained by O. Polivodskyy

If someone signs a contract, he has to fulfill its terms. Also, when it comes to termination of contracts or refusals to fulfill it. And, as a general rule, refusal to fulfill the contract unilaterally is not allowed if it is not provided in the contract itself.

This was highlighted by the Sofiya Law Firm partner Oleksandr Polivodskyy, while answering questions from the industry publication AgroPolit.com about practical steps that can help farmers resolve controversial issues of forward contracts.

The fact is that the analysis of this year's autumn market prices for grain, as well as the dynamics of fulfillment of forward contracts by farmers show that the Ukrainian agro-industrial complex faced another problem. Traders are waiting for contracts to be fulfilled, and farmers are reluctant or unable to fulfill those contracts.

Of course, every single situation with non-fulfillment of a forward contract should be considered separately, being based on the text of the agreements, - O. Polivodskyy is convinced. "After all, there are forward contracts that are concluded on the stock exchange (with a reservation on stock trading), and those that are concluded between the parties. Therefore, there may be many different "buts", - warns the lawyer. "However, all these 'buts' are resolved by a court that will consider the company's obligations, contract terms and performance."

When it comes to force majeure as a reason for non-fulfillment of the contract, it is worth remembering the need to prove it to the party, the relevant authorities or provide other logical explanations. "It should be remembered that force majeure is a possibility of non-fulfillment of the contract, which must be confirmed. In fact, force majeure can be one of several reasons for not fulfilling a forward contract. But all of them must be substantiated and confirmed, for example, when the other party does not fulfill its obligations, "- summed up the Sofiya Law Firm partner.

Read more in the full version of the article "Failure to fulfill forward contracts - a sentence for farmers or a way to dialogue with traders?" on the portal AgroPolit.com.

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