Supply agreements:
Attorney is expected to furnish a watertight, tailor-made purchasing agreement between the supplier and GroSpace. This agreement should serve as a document detailing the agreements between the supplier and GroSpace. Attorney may not in any manner profit from the deals between the supplier and GroSpace. Attorney’s function is to prepare supply agreements and negotiate terms provided to them by GroSpace. Attorney will be paid for each agreement that they prepare after the supplier and GroSpace agree to the terms within the document. Parties can only agree via hand written signature. Attorney is expected to amend the agreement should this be necessary at no additional cost. This agreement should allow for continuation and attorney is expected to negotiate on behalf of GroSpace and document amendments to the agreement with GroSpace’s best interests in mind. Any renewals and extensions will cost GroSpace for the relevant changes necessary. All agreements must include escape clauses for GroSpace to utilise when necessary along with penalties to maintain contractual compliance.
Agreements for Dropshippers
Drop shippers are market agents that earn a 1% commission on the sale of products through GroSpace. Drop shippers are independent marketing agents tasked with the activity of selling products on GroSpace. Drop shippers do not fulfil orders, they simply create and develop market opportunities to sell into. Drop shippers earn a 1% commission which is automatically deducted from their sales and paid into their GroWallet where the fund can be withdrawn into their bank of choice.
Clawback on drop shippers commission:
In the case where sales agreements are generated by drops shippers, if the drop shipper fails to maintain the relationship and the contract for sale fails before the contract term is complete, GroSpace reserves the right to claim back the full commission from the drop shipper. Drop shippers are expected to manage relationships with their buyers. In the case where the relationship between a buyer and a drop shipper fails, this relationship is immediately ceded to GroSpace to perform recovery and enter into negotiations to resolve the issues. The drop shipper relinquishes their right to claim further commissions and all previous commissions will be clawed back. A clawback is a contractual provision that requires an employee to return money already paid by an employer, sometimes with a penalty. Clawbacks act as insurance policies in the event of fraud or misconduct, a drop in company profits, or for poor employee performance.
Purchase agreements
Farm gate purchase price:
In the case where farmers want to sell directly to GroSpace at the farm gate price, GroSpace will purchase at 13% below the market price. GroSpace can offer an offtake contract to purchase a farmer’s products at an agreed rate. This is applied when farmers have stock on hand that is ready to harvest.
Futures contracts:
When a farmer wants to sell their future harvest to GroSpace the farmer can enter into a futures contract agreement with GroSpace for fixed quantities at a fixed price. Farmers can plant their seed or grow their livestock and sell to GroSpace at a fixed price for a future date. Futures contracts are subject to a farm consultation which includes a farm audit prior to documenting the futures contract.
Agency agreements
Selling on GroSpace:
If farmers prefer selling their products on the active market, GroSpace offers farmers commission options. Farmers can sell their products on GroSpace at a market related price with a sales commission of between 5-9% depending on the package that the farmer chooses to register.