Guaranteed Price System Notes and Procedures
Guaranteed Price System Procedures for Purchaser
Guaranteed Price System Questions
Guaranteed Price System Registration Form
Guaranteed Price System Notes and Procedures
Guaranteed Price System Procedures for Purchaser
Guaranteed Price System Questions
Guaranteed Price System Registration Form
The Waiting Game
As it stands, the current system of trading quota can only be described as extremely haphazard. When making an offer on quota it may take several days to get an answer. How many of you have made an offer, been told it will be taken back, then heard nothing for over a week? The transferor may be difficult to get hold of and once contacted may wish to think about it, then finally will turn the offer down. In certain cases, you offer x they want x + 1 you match this, they want x + 2 and so on and so on.
The Deal
Even if an offer is accepted the problems may not end there. How many of you have experienced or heard a friend experience some one ‘pulling out’ of a deal. It is the scourge of the quota trading business. Until both parties have signed and contracts are exchanged a deal is subject to contract and either party can withdraw. In the past there have been cases of both transferees and transferors pulling out of a deal. - you think you have brought at x or you think you have sold at x, a drastic price change and the other party pulls out. What are the losses? 1ppl on 100,000 litres = £1,000. Can you afford this type of loss? - The Guaranteed Price System aims to put an end to these problems.
We have vendors and lessors who place quota on our registers at a price which they are willing to accept. By signing up to our Guaranteed Price System before hand they are legally bound to stick to that deal once you have offered to buy at that price and we have accepted that offer on their behalf. If you would like to trade in this way you can take quota at the price stated by pre registering and agreeing to stick to your deal. The Guaranteed Price System is of benefit to both transferors (vendors and lessors) and transferees (purchasers and lessees).
Transferors
Once
a price is agreed if the price falls the purchaser cannot pull out of the deal.
Purchasers will not be able to ‘hedge’ by making offers they do not necessarily
intend to proceed with if the price changes.
Transferees
Should you agree to a deal and prices go up, the vendors will not be able to withdraw from the deal. No more waiting for days on end for an offer to be agreed. No more ‘moving the goal posts’ by vendors when you agree to their initial asking price.
Transferors (Vendors and Lessors)
If you
would like to register to our ‘Guaranteed Price System’ and know any fixed price
offer on your quota will stand this is what you do:
1. Telephone, fax or e-mail your request to register and we will send you our
Guaranteed Price System Form of Instruction.
2. You sign the Guaranteed Price System Form of Instruction and return it to
us with the price and amount of quota you would like to put on our books. Any
quota placed on the Guaranteed Price System must be given as sole agency and
not registered with other agents.
3. On receipt of the signed Form of Instruction we will issue you with a PIN
number.
4. Should you wish to increase the price you must give 1 working days notice
(24 hours) stating your PIN number. The price can be reduced at any time again
using your PIN number. Remembering the weekend, to change a price by 12pm on
Monday you will need to issue that change by 12pm on Friday.
5. Your quota will be made available to transferees ‘signed up’ to the Guaranteed
Price System who will not be able to pull out of the deal. Once they have made
an offer to buy/lease at the fixed price specified by you and we have accepted
this offer on your behalf.
6. Once a binding contract has been made, we will send you the documentation
recording it by first class post. All you have to do is sign and return it to
us as soon as possible, in the envelope provided.
7. The contract will be conditional until the Intervention Board has approved
the transaction. Once Intervention Board approval has been obtained, we will
date the documentation and the quota will be transferred, provided payment in
full has been received from the transferee.
Transferees (Purchasers and Lessees)
If you would like to offer on our Guaranteed Price Quota you will need to register as follows:
1. Telephone,
fax or e-mail your request to register and we will send you our ‘Guaranteed
Price’ registration form.
2. Once you have completed the Guaranteed Price Registration Form signed and
returned it to us we will issue you with a PIN number.
3. When you see a quota lot you would like to offer on, you can either telephone,
fax or e-mail us the offer quoting your PIN number.
4. Once we have verified your PIN number (during working hours), if your offer
is at the asking price we will accept it on behalf of the vendor/lessor (subject
to no other offers being forward). At this point the contract is binding but
we would ask you to confirm your offer by fax or e-mail within 4 hours using
our standard form. Offers through our website automatically utilise an e-mail
confirmation.
5. If you offer under the asking price we will go back to the transferor and
ask them if they would like to alter their price using their PIN number.
6. Any offer under the asking price can be withdrawn at any time before the
transferors’ acceptance. Once a deal has been confirmed by PIN number from both
parties it is legally binding. Please note as our website is not yet a secure
site your ‘Guaranteed Price’ transaction will not be confirmed remotely.
For more details on how the Guaranteed Price System works, please see our Procedure for Purchasers of Quota (Guaranteed Price System).
The notes below set out the procedure which you must follow to purchase/lease milk quota using the Guaranteed Price System
1. The
procedure
The procedure involves the following stages:
You registering
with us by completing a pre-registration form.
You contact us by telephone, fax or e-mail to make an offer to buy, using the
PIN number we give you when you register.
A binding contract being entered into between you and the vendor/lessor as soon
as we accept your offer as agent for the vendor/lessor over the telephone. A
binding contract can only be made once we have verified your Pin Number. Note
that at this stage the contract is conditional on Intervention Board approval.
You sending us a confirmation form with details of the agreed purchase, including
the quantity of quota and the agreed price, as evidence of what was agreed over
the telephone. This confirmation should be provided by faxing or e-mailing a
completed confirmation form to us within 4 working hours of us accepting the
offer over the telephone as agent for the vendor/lessor (offers from Our website
send an automated e-mail confirmation).
Us sending you and the vendor/lessor sets of sales/lease documentation by first
class post which you and the vendor/lessor must complete and return to us. You
must complete and sign this documentation and return it to us by first class
post as soon as practicable, together with full payment for the quota. The contract
becoming unconditional once we have obtained Intervention Board approval for
the transaction. At this point provided we have received payment for you in
cleared funds we will date the sales/lease documentation and the quota will
be transferred.
2. Forms
The forms you need to follow this process can be obtained:
- By clicking on the links below to download a copy, if you are viewing these terms online:
pre-registration
form
confirmation form
- by asking us to post you copies (please see our contact details below).
3. Terms and Conditions
The procedure outlined
above applies to all transactions under the Guarantee Price System for the sale
and purchase or leasing of milk quota. The purchase of milk quota is governed
by our Procedure & Terms of Business – Purchaser of Milk Quota and the leasing
of milk quota by our Procedure & Terms of Business – Lessee of Milk Quota.
These terms should be read in conjunction with this document. If you are viewing
this document online, you can view these sets of Terms by clicking here
4. Pin
Number
On receipt of a pre-registration form completed and signed by you, we will e-mail/send
your PIN number. You must give us your Pin Number when you telephone to enter
into any contract to buy quota under the Guarantee Price System. Your PIN number
will be valid for a period of one quota year (quota years run from 1st April
to 31st March).
The Pin Number is the method we will use to identify you and so are extremely valuable. You agree to use your best efforts to keep them safe and confidential. You are responsible for all transaction entered into using your pin number, even if the transaction is in fact made by someone else using them. If you believe there has been a breach of security of your pin number you should contact us immediately.
5. Telephone Recording
We reserve the right to record all telephone conversations without notice and to provide copies of the recordings to any third parties at our discretion.
6. Contact Details
You can contact us by telephone on 01452 880044, by e-mail to quotas@bkonline.co.ukor by post to BK's National Quota Exchange, The Cattle Market, St Oswald’s Road, Gloucester, GL1 2SR.
Q
What if I do not want all the quota that is on offer?
A
The transferor is bound to agree subject to the offer not leaving him/her with
less than 10,000 litres for sales and 20,000 litres for leasing.
Q
What happens if I lose my PIN number?
A Please contact BK's National Quota Exchange
with your personal and quota details to hand for verification and issue of a
new PIN number.
Q If I am selling my quota and I decide to put the price up, can I do that?
A A transferor (vendor/lessors) can change their price downwards
at any time. In order to move the price upwards you must use your password and
give 1 working days’ (24 hours) notice. This will not include Bank Holidays
or Weekends.
Q What would happen if I agreed to purchase a quota lot giving my PIN number
and decide not proceed.
A Once you have agreed a price using your PIN
number the deal is legally binding and you cannot withdraw. Due to this it is
vital that you are happy to go forward with the trade and have the finances
available to complete.
In order to buy milk quota using the Guarenteed Price System you must complete this form and return it to:
The National Quota Exchange, The Cattle Market, St Oswald’s Road, Gloucester, GL1 2SR.
Name:
Address:
Telephone No:
Fax:
E-mail:
Intervention Board Number:
Purchaser Group:
Once the completed form has been processed by us, we will issue you with a pin number. This pin number must be used whenever you contact us to enter into a transaction using the Guaranteed Price System.
The pin number is the method we will use to identify you and so are extremely valuable. You agreed to use your best efforts to keep it safe and confidential. You are responsible for all transactions entered into using your PIN number, even if the transaction is in fact made by someone else using it. If you believe there has been a breach of security of pin number you should contact us immediately.
I confirm that the details set out above are correct and that I have read the Procedure for Purchasers(Guaranteed Price System) a copy of which was posted to me with this form/on the Bruton Knowles website (delete as appropriate) and agree to comply with that procedure and the terms and conditions referred to in it.
Signed:……………………………….
Date Received:……………………….