By only taking a quick cursory review of the USDA inspection, a shipper may miss the full story as to whether there was an actual breach of contract (failure to meet good delivery). You must remember that a USDA certificate may in most circumstances reflect that the commodity failed to grade U.S. No. 1, but that does not mean the shipper failed to meet the terms of the negotiated sales contract under a “NO GRADE CONTRACT”.

Bryan Nickerson


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