An international trade association Gafta has been helping grain market participants protect their interests for more than 140 years. During the years of its existence, Gafta has expanded the list of services, but the main one is still the drafting of standard pro forma grain trade contracts. Read on to learn about the benefits of such contracts, their costs, and more.
The Benefits Of Standard Grain Trade Contracts
The first excellent advantage is the ability to focus on the essentials. The main thing is that both parties agree on the price, quality, and delivery time. They can trust all other details to particular Gafta contracts.
The next thing worth mentioning is the convenient timing of the application. The time limit at Gafta is one year. The point of reference may be the date of the bill of lading, the date of discharge, or the end date of the delivery period. The time limit for quality disputes is 21 days, and the claim is filed within one year of notification. In the case of a special request, the time limit may be extended by a maximum of six years.
Gafta arbitration is attractive by its cost. On average, it will cost £14,654.65. At first glance, it may seem that the amount is enormous. But to understand the benefit, you should look at the cost of a similar solution in the London Court of International Arbitration. It is also worth considering that the plaintiff undertakes to pay the deposit. If the plaintiff wins, the losing party will cover the costs.
Despite all the advantages, it is worth taking a balanced approach to going to GAFTA arbitration. To weigh all the pros and cons with experienced lawyers, who know about all the nuances, is an intelligent solution. Various challenges may arise during the process. For example, a debtor may hide its assets. To get around all the pitfalls and reach the goal, you need the help of a qualified lawyer.
Dispute Resolution: Procedure
The dispute resolution procedure depends on the complexity of the case. In more or less simple cases, it is customary to use the Gafta 125 and Gafta 126 regulations.
The first stage involves the appointment of an arbitrator and filing a claim. Next is the deposit; the waiting time for the complaint preparation is 21 days. If necessary, an additional round can be held for detailed explanations. The Secretary of the Association keeps all correspondence. The basis for any hearing is written material, and direct contact with arbitrators is prohibited.
You may request an oral hearing, but it will be held only if the court deems it necessary in the case. In practice, this happens very rarely.
What Happens After The Award
Winning is not the end of the business. The decision is to be recognized and enforced where the company is registered. In other words, the enforcement will be where the debtor’s assets are officially located. What does the enforcement involve? First and foremost, it is filing a certified judgment and contract with the local court to verify compliance with the formal requirements. The next step is to hand over the award to the executor. Finally, it goes to attachment of assets and enforcement against the debtor.