abhishreshthaa
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Forward contracts
All contracts in commodities providing for delivery of goods and/or payment of price after 11 days from the date of the contract are "forward" contracts.
Forward contracts are of two types -
"Specific Delivery Contracts" and
"Futures Contracts".
Specific delivery
Specific delivery contracts provide for the actual delivery of specific quantities and types of goods during a specified future period, and
in which the names of both the buyer and the seller are mentioned.
Futures contract
A futures contract is a type of "forward contract". FCRA defines forward contract as "a contract for the delivery of goods and which not a ready delivery is contract".
The term 'Futures contract' is nowhere defined in the FCRA. But the Act implies that it is a forward contract, which is not a specific delivery contract.
However, being a forward contract, it is necessarily "a contract for the delivery of goods".
A futures contract in which delivery is not intended is void (i.e., not enforceable by law), and is, therefore, not permitted for trading at any commodity exchange.