The sale of produce in a primary market takes place on the basis of the visual inspection of the goods, and in the secondary and terminal markets on the inspection of the samples.
The buyer and the seller decide upon the terms either orally or through written contracts. The contract terms specify the quality and quantity of the produce, the time and place of delivery, the price and terms of payment, handling and incidental charges, the procedure for settlement of disputes and penalties. The terms of contract were not standardized and thus varied for every individual transaction, and were more favorable to the buyer.
With a view to improving trade practices, All India standard contract terms have been drawn up for a number of commodities. In standard contract terms the definition of quality and allowances in respect of refraction, damaged goods have been specifically standardized. These standard contract terms by traders is voluntary they have to large extent strengthened the position of the producer-seller and have improved the quality of the product marketed.
The buyer and the seller decide upon the terms either orally or through written contracts. The contract terms specify the quality and quantity of the produce, the time and place of delivery, the price and terms of payment, handling and incidental charges, the procedure for settlement of disputes and penalties. The terms of contract were not standardized and thus varied for every individual transaction, and were more favorable to the buyer.
With a view to improving trade practices, All India standard contract terms have been drawn up for a number of commodities. In standard contract terms the definition of quality and allowances in respect of refraction, damaged goods have been specifically standardized. These standard contract terms by traders is voluntary they have to large extent strengthened the position of the producer-seller and have improved the quality of the product marketed.