Business / Agriculture / Contract: Written or oral agreement spelling out the parties’ understanding of how a commodity is to be produced and/or marketed, including specifications for quantity, quality, and price. Marketing contracts are commonly used for crops, while production contracts are more prevalent in the livestock industry. Contracts contrast to cash markets. Cash markets continue to dominate the agriculture sector, accounting for almost 70% of farm commodity sales in 1997. However, contracting could likely continue to grow as a risk management tool for farmers and a coordination tool for processors. Futures contracts provide a way to manage price risk that typically do not involve actual delivery of commodities.
Contract Adjective Synonyms: agreement, understanding, deal, bargain, arrangement, pact, commitment, obligation, compact
Contract Noun Synonyms: engage, agree, promise, covenant, undertake
Contract Verb Synonyms: catch, acquire, get, come down with, develop, become infected with, go down with
Business / Finance / Cash Settlement Contracts: Transaction in which a contract is settled on the same day as the trade date, or the next day if the trade occurs after 2:30 p.m. EST and the parties agree to this procedure. Often occurs because a pa MORE
Business / Finance / Futures Contract Multiple: Agreement to buy or sell a set number of shares of a specific stock in a designated future month at a price agreed upon today by the buyer and seller. The contracts themselves are often traded on the MORE