Commodity Contract Clause Samples
A Commodity Contract clause defines the terms and conditions under which commodities—such as raw materials, agricultural products, or energy resources—are bought, sold, or exchanged between parties. This clause typically outlines specifications for the commodity, delivery schedules, pricing mechanisms, quality standards, and payment terms. By clearly establishing the rights and obligations of each party regarding the commodity transaction, the clause helps prevent disputes, ensures both parties understand their commitments, and allocates risk associated with fluctuations in price or supply.
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Commodity Contract. A contract or option thereon providing for the delivery or receipt at a future date of a specified amount and grade of a traded commodity at a specified price and delivery point.
Commodity Contract. The term “
Commodity Contract. The term ‘‘commodity contract’’ means—
(I) with respect to a futures commission mer- chant, a contract for the purchase or sale of a com- modity for future delivery on, or subject to the rules of, a contract market or board of trade;
(II) with respect to a foreign futures commis- sion merchant, a foreign future;
(III) with respect to a leverage transaction merchant, a leverage transaction;
(IV) with respect to a clearing organization, a contract for the purchase or sale of a commodity for future delivery on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization, or commodity op- tion traded on, or subject to the rules of, a contract market or board of trade that is cleared by such clearing organization;
(V) with respect to a commodity options dealer, a commodity option;
(VI) any other agreement or transaction that is similar to any agreement or transaction referred to in this clause;
(VII) any combination of the agreements or transactions referred to in this clause;
(VIII) any option to enter into any agreement or transaction referred to in this clause;
(IX) a master agreement that provides for an agreement or transaction referred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII), to- gether with all supplements to any such master agreement, without regard to whether the master agreement provides for an agreement or trans- action that is not a commodity contract under this clause, except that the master agreement shall be considered to be a commodity contract under this clause only with respect to each agreement or transaction under the master agreement that is re- ferred to in subclause (I), (II), (III), (IV), (V), (VI), (VII), or (VIII); or
(X) any security agreement or arrangement or other credit enhancement related to any agreement or transaction referred to in this clause, including any guarantee or reimbursement obligation in con- nection with any agreement or transaction referred to in this clause.
Commodity Contract