If the contractual partner does not fulfil his delivery obligations, it is necessary to set a grace period according to the standard conditions in the German grain trade. Without a grace period, one often cuts off one’s contractual rights – there is no general right to refuse a delivery.
If the contractual partner does not fulfil his obligations, a grace period must be set regularly in accordance with the standard conditions in the German grain trade. Only then can the contractual partner assert further rights. Thus, the uniform conditions fit into the mode of German contract law. Even under the general sales law, a period of grace must regularly be set in order to demand fulfilment of the contractual obligations.
Duration of the extension period is regulated in the unitary conditions
How long the grace period is to be measured depends on the breached duty and follows from the unit conditions themselves. In delivery and acceptance contracts, the period is measured according to the length of the performance period and amounts to two to five business days. If the buyer does not pay, the grace period is even considerably shorter and amounts to only one business day.
The parties may only assert further rights if the grace period has expired without success. This includes rights such as withdrawal, damages, covering transactions or price determination. Only in a few exceptional cases can these rights be asserted without prior notice in accordance with the standard conditions.
We advise farmers, agricultural traders and all persons involved in agricultural trade on all legal issues relating to the uniform conditions. Especially if you have questions about your contractual rights and obligations, we look forward to hearing from you.