Contract agreement
Under the contracting agreement , the agricultural producer agrees to transfer the agricultural products grown (produced) by him to the procurer - the person who purchases such products for processing or sale.
The contract of contracting, as well as the supply contract, is characterized by the fact that agricultural products are transferred to the contractor mainly for entrepreneurial activity, and accordingly it is very close in its characteristics to the supply contract.
The parties to the contract, the seller (producer) and the procurer (contractor), in almost all cases, are entrepreneurs. In some cases, through the authorized bodies, the state may also act in respect of contracting.