Terms & Conditions

Terms and Conditions of Sale

 

1. These terms constitute the entire agreement (“Agreement”) between Livestock Wealth (Pty) Ltd (“Livestock Wealth”) and the purchaser of a cow (“Owner”) concerning the purchase, farming, calving and sale of the cow and its calves.

 2. This Agreement shall become effective on the date on which the Owner purchases a cow from Livestock Wealth, subject to (i) the Owner paying the price in full or (ii) the Owner and Livestock Wealth reaching written terms of agreement on payment of the price in instalments.

3. The Owner purchases a cow from Livestock Wealth. The identity of the cow shall be determined and recorded on purchase. The cow shall be at least three years old and pregnant on purchase. The Owner shall acquire all of the rights of ownership in the cow and its calves on purchase except for the following rights which shall remain with Livestock Wealth:

3.1 Livestock Wealth shall retain the sole and exclusive right to sell or dispose of the cow and its calves on behalf of the Owner, which it shall exercise in accordance with the terms of this Agreement;

3.2 Livestock Wealth shall retain the sole and exclusive right to possession of the cow and its calves;

3.3 Livestock Wealth shall be the sole and exclusive provider of farming services (“Farming Services”) to the cow and its calves.

4. The price of the cow shall be the prevailing market price at the time of purchase, as agreed between the parties.

5. A cow may be purchased by pre-payment on back-order in the event that delivery of the cow to the Livestock Wealth farm is not possible at the time of purchase. In that event this Agreement will become effective on date of purchase, and the price of the cow will be fixed at that date. Livestock Wealth’s obligation to perform under this Agreement will in that case become effective on date of delivery of the cow to the Livestock Wealth farm. Livestock Wealth will endeavour to fulfil a purchase on back-order within four months of payment, however timing shall not be of the essence to this Agreement and the delivery time period is not guaranteed.

6. Livestock Wealth shall provide Farming Services to the cow on behalf of the Owner. Farming Services shall also be rendered to the cow’s calves to the extent that the calves remain in the care of Livestock Wealth in terms of this Agreement. Farming Services shall be constituted by:

6.1 Farm rental in historically productive livestock areas in South Africa, vaccinations, veterinarian services, feed, security, fencing, herdsmen, breeding and management;

6.2 The maintenance of the cow in a good and healthy condition in a farm operated by Livestock Wealth;

6.3 The branding of the cow, recording its possession to Livestock Wealth;

6.4 The tagging of the cow, recording its ownership to the Owner;

6.5 The conducting of an ongoing authenticity audit of ownership of the cow in favour of the Owner by a reputable firm of auditors;

6.6 The operation of a website that enables the Owner to remotely keep track of the vital status of the cow – its weight, pregnancy, calving, pictures etc;

6.7 The provision of quarantine facilities for the cow if it is sick.

6.8  Farming services shall be payable monthly in advance via debit order.

6.9 The farming fee invoice and statement shall be emailed to the Owner monthly

7. The Owner agrees that Livestock Wealth will provide Farming Services to the Owner’s cow at a Livestock Wealth farm in terms of this Agreement until the cow is 8 years old, and that this Agreement will renew indefinitely thereafter subject to 30 days’ notice of termination.

8. When the cow is 8 years old Livestock Wealth shall and is authorized to:

8.1 Sell the cow on behalf of the Owner at the prevailing market price; and

8.2 Apply the proceeds of the sale to the purchase in the name of the Owner of a replacement 3 year old pregnant cow.

9. Livestock Wealth shall then provide Farming Services to the replacement cow on behalf of the Owner in accordance with this Agreement. The parties agree that this cycle will continue and repeat itself indefinitely.

10. If there is a shortfall in the proceeds of the sale of the cow in meeting the cost of the replacement cow, Livestock Wealth shall top up the shortfall at no extra charge to the Owner.

11. When a calf of the first cow and a calf of every replacement cow is 7 months old Livestock Wealth shall and is authorised to:

11.1 Sell the calf on behalf of the Owner at the prevailing market price;

11.2 Apply the proceeds of the sale communally, together with the proceeds of all other calf sales from the Livestock Wealth farm in a given year, to the meeting of the selling and marketing costs to the Owner and the other owners of cows and / or calves on the Livestock Wealth farm in the same year; and

11.3 Divide and pay out the remainder of the proceeds of the calf sales communally between the Owner and the other owners of cows on the Livestock Wealth farm according to the number of cows they own, regardless of whether their cows have calved in that year (“Income”).

12. The Income is a financial return to the Owner that comes from the income earned from calf sales. If Livestock Wealth provides Farming Services on behalf of the Owner until the first cow is 8 years old the income is estimated to cover the initial cost of the first cow. Thereafter the sale of the first cow will fund the purchase of the replacement cow and so on renewing indefinitely thereafter in respect of each replacement cow subject to 30 days’ notice of termination.

13. In the event that the Owner’s cow suffers death or sickness, injury or disability, fails to calve or rejects the calf with the result that it is terminated or, in the discretion of Livestock Wealth exercised in the best interests of the performance of this Agreement, it stands to be replaced, then Livestock Wealth shall and is authorized to:

13.1 Sell the cow on behalf of the Owner at the prevailing market price, and

13.2 Apply the proceeds of the sale to the purchase in the name of the Owner of a replacement 3 year old pregnant cow, provided that if there is a shortfall in the proceeds of the sale of the cow in meeting the cost of the replacement cow, the Owner shall top up the shortfall.

14. Livestock Wealth shall not be liable to the Owner for any losses or damages suffered by the Owner in the event that the cow or its calf is stolen, suffers death or sickness, injury or disability, or fails to calve or rejects the calf, is terminated or replaced at the discretion of Livestock Wealth exercised in the best interests of the performance of this Agreement, unless the cause for such circumstance is the intentional or negligent conduct of Livestock Wealth or its employees or contractors.

15. The cow and its calves are not insured for any risks. In the event that the Owner requires insurance cover, Livestock Wealth will assist in obtaining the requisite insurance cover.

16. The Owner is not entitled to terminate this Agreement or sell the cow while it is pregnant or before it weans a nursing calf.

17. Livestock Wealth shall have a lien (i.e. right of retention) over the cow and its calves until all amounts owing by the Owner to Livestock Wealth in terms of this Agreement, including but not limited to all unrecovered Farming Services costs, bank charges and usual administrative expenses, are paid in full.

18. In the event that the Owner terminates this Agreement before the first cow attains 8 years and wants Livestock Wealth to sell the cow and any calf it might have at the time, Livestock Wealth shall be entitled to recover from the proceeds of the sale all amounts owing by the Owner to Livestock Wealth in terms of this Agreement, including but not limited to all unrecovered Farming Services costs, bank charges and usual administrative expenses.

19. The Owner may not use the cow or its calf as collateral or security for any transaction, or sell or dispose of the cow or calf or any of the Owner’s rights therein without first obtaining the written approval of Livestock Wealth.

20. In the event that the Owner would like to visit the Livestock Wealth farm to view the cow or its calf a prior appointment with Livestock Wealth shall be made on reasonable notice.

21. The interest earned on all monies held by Livestock Wealth on behalf of the Owner in terms of this Agreement shall accrue to Livestock Wealth.

22. If any of the parties breach any provision of this Agreement (“Defaulting Party”) and, if such breach is capable of being remedied, fails to remedy the breach within 10 days after written notice has been given to the Defaulting Party by the other party requiring the breach to be remedied (“Aggrieved Party”), the Aggrieved Party shall be entitled, without prejudice to any other rights it may have, to:

22.1 Seek an order for specific performance against the Defaulting Party; or

22.2 To claim any damages suffered by the Aggrieved Party.

23. The Owner shall be liable for all costs and expenses (calculated on an attorney and own client scale) incurred as a result of or in connection with any breach.

24. This Agreement shall in all respects (including its existence, validity, interpretation, implementation, termination and enforcement) be governed by the law of South Africa.

25. This Agreement constitutes the whole agreement between the parties relating to the subject matter hereof and supersedes all other discussions, agreements and/or understandings regarding the subject matter hereof.

26. No amendment or consensual cancellation of this Agreement or any provision hereof, and no settlement of any disputes arising out of this Agreement, and no extension of time, waiver or relaxation or suspension of or agreement not to enforce or to suspend or postpone the enforcement of any of the provisions of this Agreement, shall be binding unless first recorded in writing and signed by the parties

27. To the extent permissible by law no party shall be bound by any express or implied or tacit term, representation, warranty, promise or the like not recorded herein, whether it induced the contract and/or whether it was negligent or not.

28. Any provision in this Agreement which is or may become illegal, invalid or unenforceable, be ineffective to the extent of such prohibition or unenforceability and shall be treated as if it had not been drafted and severed from the balance of this Agreement, without invalidating the remaining provisions of this Agreement.

29. This Agreement shall be binding upon all the parties and upon their estates, executors, administrators, liquidators or curators.

30. The rights and obligations of the Owner in terms of this Agreement may not be ceded or assigned without the prior written permission of Livestock Wealth.