Agricultural and Food Supply Chain Act 2023

Agri-Food Unfair Trading Regulations: contracts

60. (1) Agri-Food Unfair Trading Regulations may prohibit a refusal to confirm in writing the terms of a supply agreement.

(2) Agri-Food Unfair Trading Regulations may specify forms of contract to be used in relation to specified transactions, or aspects of transactions, between buyers and sellers in the agricultural and food supply chain.

(3) Agri-Food Unfair Trading Regulations may provide for—

(a) the manner in which forecasts for the supply of products are to be prepared, and

(b) the communication of the basis on which they are prepared.

(4) Agri-Food Unfair Trading Regulations may specify the means, including the provision of written notice, by which a contract for the sale or supply of products may be—

(a) varied,

(b) terminated, or

(c) renewed.

(5) Agri-Food Unfair Trading Regulations may specify circumstances in which arrangements relating to the supply or delivery of products, including the frequency and timing of supply or delivery, may be varied.

(6) Agri-Food Unfair Trading Regulations may require certain terms and conditions to be incorporated expressly into written contracts for the sale or supply of products, or may provide for certain terms and conditions to be incorporated by implication into written or oral contracts for those purposes, including terms and conditions in relation to—

(a) payment for products supplied to a relevant buyer,

(b) the ordering, supply, price, marketing and sale of goods on promotion and the duration of the promotion,

(c) the circumstances in which wastage that occurs at the premises of a relevant buyer is to be considered as due to the negligence or fault of the supplier, where a contract provides for payment arising from the negligence or fault of the supplier, and

(d) the circumstances and manner in which a buyer may require a supplier to make any payment, either directly or indirectly, towards the resolution of a customer complaint.

(7) Agri-Food Unfair Trading Regulations may provide that a buyer shall not enter into or renew any contract for the sale or supply of products unless the contract includes terms and conditions specified in Agri-Food Unfair Trading Regulations about the following:

(a) the conditions under which a buyer may, or may not, directly or indirectly require a supplier to obtain any goods or services from a third party if the relevant buyer receives payment for the arrangement;

(b) in relation to delays or failures in performance of a contract for the sale or supply of products resulting from circumstances beyond the reasonable control of a party—

(i) the extent of the liability of the party, and

(ii) the actions that may or shall be taken by the parties to the contract in such circumstances.

(8) Agri-Food Unfair Trading Regulations may provide that a trading practice is unfair—

(a) unless provided for in clear and unambiguous terms in supply or subsequent agreements, or

(b) even if provided for in clear and unambiguous terms in supply or subsequent agreements.