Mix and (not) Match – does combining house sale terms with GAFTA contracts work?

Introduction

When traders combine GAFTA with other standard terms in soft commodity contracts they may wish to present an appearance of neutrality – or simply to have a bit of the best of both worlds. This practice might be a compliment to the Grain and Feed Trade Association's (GAFTA) standard terms, but careful thought is needed to avoid creating confusion.

Superimposing GAFTA terms on another set of contract terms runs the risk of lengthy and costly legal argument.

In fact recent appeals from GAFTA illustrate how the possibility of conflict can lie hidden even within the clauses of one GAFTA contract.  This article considers some recent GAFTA appeals, and explores how conflict might also persist when GAFTA standard terms and non GAFTA terms are combined.