Level 9 · Part 2
The terms that matter
Price is only one term. Quantity, quality, delivery and payment decide whether the deal works.
Many deals go wrong not because of the price, but because one side thought something different about the other terms. Agree each term clearly.
| Term | Question to settle |
|---|---|
| Quantity | How much, how often, and what if the buyer wants more or less? |
| Quality | What exactly is acceptable: size, condition, moisture, packing? Who checks, and when? |
| Delivery | Where, when, who transports, who pays, who bears the risk on the way? |
| Price | Fixed or changing? What does it include? How and when is it reviewed? |
| Payment | When and how is payment made? What if payment is late? |
| Problems | What happens if goods are rejected, delayed or damaged? Who decides? |
Payment terms deserve extra care
A good price paid very late can cost more than a lower price paid on time, because you still need money for the next cycle (Level 10). Agree when payment is due, how it is made, and what happens if it is late. Be careful about handing over large quantities before you are sure of payment, especially with a new buyer.
A simple example (invented)
A buyer offers a good price but wants delivery on credit and says they will pay 'later'. You ask: how much later? What date? What if I do not receive it? You may agree to send smaller amounts at first and increase them as trust grows.
Exercise 9.2 · Complete the terms
- Take your deal from exercise 9.1.
- Write one clear sentence for each of the six terms in the table.
- Mark the term you are least sure about and write the question you will ask the buyer.
Background reading for this part:
- Legal Guide on Contract Farming — UNIDROIT, FAO and IFAD, 2015
- Agricultural and Food Marketing Management — Food and Agriculture Organization of the United Nations (FAO), I. M. Crawford, 1997