AUCTION TERMS:
Cattle Drive Video Market will be referred to as CDVM
- Announcements from the auction block take precedence over printed material.
- All buyers must register and have a buyer’s number to participate.
- In case of disputes between bidders, the auctioneer may resell the lot. The auctioneer’s decision is final.
- The auctioneer reserves the right to reject any and all bids. The auctioneer and clerk’s records are final in disputes.
- This is a load lot sale. A load of sheep is 45,000 net weight or greater unless otherwise stated.
DELIVERY:
- All sheep are weighed on a certified scale compliant with GIPSA regulations.
- Sheep are sold FOB shipping point; losses during transit are the buyer’s liability. Freight rates are not guaranteed by CDVM or the seller.
- No freight adjustment for sheep weighing below the estimated base weight if within 5% of the contracted head count.
- Sheep are sold on a sliding scale as described in each lot’s information.
- If a buyer purchases multiple lots, the contract becomes one lot.
- Percentages used to describe color are approximate.
- CDVM will have a representative at all shipments.
- Ship dates will be set by the rep unless otherwise stated.
- The seller shall deliver within 5% of the stated number of livestock, excluding any unmerchantable livestock.
- If the seller fails to deliver the stated number of heads, they must replace the missing sheep or pay the difference between the contract price and the prevailing market price, including any necessary freight adjustments.
WARRANTIES:
- No warranties beyond what is expressly set forth in this contract. The seller and CDVM representative warrant good and marketable title to the livestock, delivered free from liens or encumbrances. If sheep are subject to a lien, it will be satisfied by the seller at delivery.
PAYMENT:
- All purchases require a $15.00 per head part payment due at the auction’s conclusion. Remote buyers must wire transfer funds the following business day. The seller will receive a down payment at the auction’s conclusion.
- CDVM will advance the seller $15.00 per head as part payment. If the seller fails to deliver as described, the seller must return all money advanced, and the contract will be null and void.
- Full payment must be made upon shipment: (A) If the buyer is present, payment in collected funds is due at delivery. (B) If the buyer is not present, payment must be received by CDVM within one business day after sheep are received. Payments must be made by wire or ACH transfer, and fees are the buyer’s expense. For multiple-day shipments, payment is required on each day’s delivery.
- Execution: The making of part payment by the buyer or receipt and negotiation of part payment by the seller constitutes full agreement to the terms and conditions. Failure to object within 24 hours of notice waives any objections.
- Security Agreement: By making direct payment, the buyer grants CDVM a security interest in the livestock until full payment is received. Default exists if final payment is not received within one business day from possession or upon the buyer’s bankruptcy or insolvency. CDVM may exercise all rights accorded by law upon default.
- Default: If either party defaults, the non-defaulting party may pursue legal remedies, including specific performance. The successful party in any action is entitled to costs and reasonable attorney’s fees. CDVM will deliver the down payment balance to the non-defaulting party or deposit it into an interest-bearing account requiring both parties’ signatures for withdrawal.
BUYER & SELLER RESPONSIBILITIES:
- The seller agrees that the remaining balance, less commission due to CDVM, and any necessary adjustments shall be paid at delivery.
- The seller is responsible for weighing expenses and all statutory fees.
- The seller shall provide any required brand and health certificates and affidavits.
- The buyer must notify CDVM when health certificates are needed. Additional certificates for delivery to another state are at the buyer’s expense.
- The seller shall handle livestock in their normal manner until delivery unless otherwise agreed in writing.
- CDVM will assist in settling disputes concerning contract fulfillment. Both parties waive claims against CDVM for loss, damage, injury, or non-compliance with the contract.
ADDITIONAL TERMS:
- The seller warrants title to all livestock delivered under the contract, free from liens or encumbrances.
- The seller must comply with all federal and state laws and regulations regarding livestock weighing.
- The seller shall not weigh livestock prior to delivery.
ADDITIONAL BUYER REPRESENTATIONS:
- The buyer is financially able to fulfill obligations under this contract.
- The buyer has received, read, and understands all contract terms and conditions.
ADDITIONAL SELLER REPRESENTATIONS:
- The seller has received, read, and understands all contract terms and conditions.
- The seller has good and marketable title to all livestock delivered.
- The livestock will be free from liens or encumbrances.
- The livestock will comply with all federal and state laws and regulations.
We probably in the future ought to address the possibility that we may sell ewe lambs, yearlings, breeding ewes, cull ewes, rams on the sale. For now I don’t think it is necessary.
SLIDES:
All sheep will be sold on a sliding scale with one of the following slide types:
Traditional Slide: If the average weight exceeds the base weight, the price will be adjusted according to the specified rate per pound over the base weight as stated in the contract.
Example:
- Base weight: 100 lbs
- Purchase price: $150.00/cwt
- Slide: $1.00/lb
- Average weight on delivery: 105 lbs
Calculation:
- 105 lbs – 100lbs = 5 lbs over base weight
- 5 lbs x $1.00 = $5.00/cwt reduction
- $150.00/cwt – $5.00/cwt = $145/cwt adjusted price
Weight Stop: A weight stop allows the buyer to acquire additional weight beyond a specified limit without extra cost (e.g., anything over 7 lbs is free).
Example:
- Slide: $1.00/lb
- Weight stop: 7 lbs
- Average weight on delivery: 110 lbs
- Weight stop at: 107 lbs (last 3 lbs are free)
Calculation:
- 7 lbs x $1.00 = $7.00/cwt reduction
- $150.00/cwt – $7.00/cwt = $143.00/cwt adjusted price
Two-Way Slide: The price per cwt will decrease by the specified slide amount for every pound over the base weight up to a specified limit (e.g., 7 lbs max). Conversely, the price will increase by the same amount for every pound under the base weight, up to the same limit.
Example:
- Over Base Weight:
- Slide: $1.00/lb
- Weight stop: 7 lbs
- Average weight on delivery: 110 lbs
- Base weight: 100 lbs
Calculation:
- 110 lbs – 100 lbs = 10 lbs over base weight
- Weight stop at 7 lbs over base weight (last 3lbs are free)
Example:
- Under Base Weight:
- Slide: $1.00/lb
- Weight stop: 7 lbs
- Average weight on delivery: 90 lbs
- Base weight: 100 lbs
Calculation:
$150.00/cwt + $7.00/cwt = $157.00/cwt adjusted price
100 lbs – 90 lbs = 10 lbs under base weight
Weight stop at 7 lbs under base weight
7 lbs x $1.00 = $7.00/cwt increase