Terms & Conditions
Date: 29 October 2018
About us:
Livestock Wealth is a crowd-farming platform that enables anyone to own livestock in the farms listed on our platform, and earn income from sales of offspring or the sale of the free-range beef.
Livestock Wealth PTY LTD. is a private company registered in the Republic of South Africa. Our registration number is 2015/123862/07.
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.
1.1 A cow in this context refers to a bull, a heifer, a calf, an oxen or a combination of the aforementioned, subject to agreement between Livestock Wealth and the owner.
1.2 Livestock Wealth in the context of farming services refers to farmers that farm on behalf of Livestock Wealth
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 paying the full price for fractional ownership or (iii) the Owner and Livestock Wealth reaching written terms of agreement on payment of the current price in instalments wherein, the final price of the cow will be based on the prevailing market price at the end of the instalment period.
3. The Owner purchases a cow from Livestock Wealth. The identity of the cow shall be determined and recorded on purchase, with specificity on the status of the cow disclosed at the point of investment. The pregnancy status of the cow is based on the best available information as received from the farmer. The Owner shall acquire all of the rights of ownership of the cow 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 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;
3.3 Livestock Wealth shall be the sole and exclusive provider of farming services (“Farming Services”) to the cow.
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 allocation. However, the final price of the cow may vary due to fluctuations in the market price of cows. 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 and/or allocation to its owner. Livestock Wealth will endeavour to fulfil a purchase on back-order within four calendar 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. In the context of the ownership of breeding cows, 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 Fee Services where applicable, shall be constituted by:
6.1 Farm rental in productive livestock areas in South Africa, vaccinations, veterinarian services, feed, security, fencing, geo-fencing, , tracking, 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 annually in advance or monthly in advance via debit order where applicable.
6.9 The farming fee invoice and statement shall be emailed to the Owner of the cow(s)
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 calf is weaned and sold in the case of a pregnant cow or until the calf is ready for slaughter in the case of the free-range cow. This Agreement will renew indefinitely thereafter subject to 30 days’ notice of termination.
7.1 Where applicable, in the event that the farming fees are unpaid to the equivalent of a third of the value of the cow, Livestock Wealth will sell the cow to recover outstanding farming fees and any credit balance credited to the customer’s account.
8. Livestock Wealth reserves the right to upgrade all previous cattle ownership agreements to the current market positioning. This will be done in a fair and equitable manner to benefit both Livestock Wealth and the investor.
9. When a free-range cow has reached slaughter-weight (400kg to 550kg), Livestock Wealth retains the exclusive right to market the beef at its discretion to local and international markets.
9.1 Livestock Wealth shall be entitled to deduct a market related profit-share for services rendered in marketing of the beef.
10 The nett-income from the sale of the free-range cows will be pooled and divided equally amongst the owners of the cows within the batch that was sent for slaughter.
11. When a calf of the pregnant cow is between 6 to 7 months old and/or has achieved a weaning weight of approximately 200kg, 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 cycle, 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 the sale of calves.
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 cow
14. Livestock Wealth shall not be liable to the Owner for any
losses or damages suffered by the Owner in the event of farm-wide
catastrophic disasters, unless the cause for such a circumstance is the intentional or negligent conduct of Livestock Wealth or its employees or contractors.
15. In the event that the cow is stolen, suffers death or sickness, injury or disability, fails to calve or rejects the calf in reference to the breeding cows, at the discretion of Livestock Wealth as exercised in the best interests of the performance of this Agreement, this cow will be replaced through the requisite insurance cover included in the compulsory farming fees, where applicable.
16. The Owner is not entitled to terminate this Agreement or sell the
Cow while it is pregnant and/or before it weans a calf. In the case that the Owner has invested in a Free-Range cow, the Owner is not entitled to terminate this Agreement or sell their individual cow up until it goes to its slaughter.
17. Livestock Wealth shall have a lien (i.e. right of retention) over the
cow, its calves and/or free-range cow 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 end of the investment period.
18.1 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 the 7% (percent) administrative cost for the facilitation of the sale.
18.2 Livestock Wealth will endeavour to complete the
divestment process within a 30 working-day timeframe, however timing shall not be of the essence to this Agreement and the divestment time period is not guaranteed.
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, 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 attorney fees 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.
