Industrial Hemp – Contracts for Purchase and Sale of Hemp Seedlings or Seed
The terms and conditions of an agreement to purchase hemp seedlings, clones or seed are as important, possibly more so, as the price.
The transaction is not like buying a bicycle at a local shop where one can determine its sturdiness, lift, sit on, pedal it around there – kick the tires, try it out to determine probable suitability for your need – all before you pay and put it in your truck or van to bring home.
Although Louisiana’s Industrial Hemp Regulations require that seedling/seed producers and sellers obtain a license, but for a certification by a seller of percentage THC of the parent plant, the regulations leave to a seller and grower/purchaser agreement as to price and all of the other terms and conditions of the sale.
The law imposes specific outcomes in disputes concerning the sale of things, but in most instances allows the two parties to enter into a binding and enforceable contract changing or modifying those outcomes by mutual agreement — provided that the agreements are in writing.
Guarantees if any of the condition or qualities of the seedlings or clones only at purchase or then and also at delivery, suitability for intended purpose or outcome a buyer may have described to a seller during negotiations, and which party bears the risk of, or duty to insure against, loss, destruction or degradation during transit, among just a few, are points the law allows the parties to negotiate and include in a contract.
The terms under which and whether or not a buyer has a reasonable opportunity to inspect even after delivery and the conditions giving rise to a right to accept part and reject part of things delivered by a seller may also be negotiated.
Contracts reviewed thus far disclose that sellers are giving careful attention to these matters, and others. Just as it is not wise to purchase a thing without kicking the tires, it is even less advisable to sign a contract without allowing time to read and seek explanation from an attorney for terms or clauses one may not understand, and legal input about advisable contract clauses to add or modify before signing.
Feb 20th , the first date on which industrial hemp licenses will begin to be issued, is now only some three weeks away and the optimal planting date for hemp is said to be the first week or two of April and thus now would be the time to begin attending to matters such as this .
More information and further reading on Louisiana’s Industrial Hemp Program
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Disclaimer: This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.