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Offtake commitment

Version 0.1-draftBinding in Englishba82e3ce4f949b6e

Demo document. No lawyer has read this.

1. What this is

You are committing to buy a named lot of coffee from a named washing station,
for a season, at a price fixed in this document.

This letter is the thing the whole arrangement rests on. Equipment is bought on
the strength of it before a single cherry is picked, so a soft commitment is
worse than none.

2. The lot

Origin, station, season, processing method, estimated volume and grade are
stated on the signature page. Volume is an estimate, because it is a crop.

3. Price

The price is fixed in this document, either as an absolute figure per kilogram
or as a stated differential to the reference contract, and it does not move
with the market after signature.

Payment terms and currency are stated on the signature page.

4. Quality, and what happens if it misses

Cupping score, moisture range, screen size and maximum defect count are stated
on the signature page. Sampling and cupping are done by the party named there.

If the lot misses the stated grade, you are not obliged to buy it at the agreed
price. What you do instead is stated here in advance rather than negotiated in
the moment: a price step-down for a lot that is close, or release of the lot for
sale elsewhere if it is not.

A quality clause with no stated remedy is where offtake agreements fail.

5. Volume

If the harvest comes in short, you take what there is at the agreed price. If
it comes in long, you have first refusal on the excess and are not obliged to
take it.

6. Delivery

Incoterm, port, and the delivery window are stated on the signature page.
Title and risk pass where the incoterm says.

7. What this is not

This is not exclusive unless the signature page says it is, and it does not
give you any interest in the equipment, the station, or the cooperative.

8. Term

One harvest. Renewal is a new letter, not an automatic extension.

This one is signed in person, by a counterparty who has no account here — a farmer at a weighing station, a clerk being registered, a vendor on an email thread. An operator reads it to them and records it under their own name.

Record a signature →
Translations still needed
  • Kinyarwanda, for Rwanda
  • Kirundi, for Burundi
  • Amharic, for Ethiopia
  • Kannada, for India
  • Spanish, for Colombia

Offtake commitment is the document a counterparty is bound by. Producing these needs a human translator working from the reviewed text, not a model.