1. 1. This chapter applies to a production contract that relates to the production of a commodity owned by an active contractor and produced by a contract producer at the contract producer’s contract operation, if one of the following applies:

   1. a. The contract is executed by an active contractor and a contract producer for the production of the commodity.
   2. b. The contract is executed by an active contractor and a passive contractor for the provision of management services to the contract producer in the production of the commodity.

   3. c. The contract is executed by a passive contractor and a contract producer, if all of the following apply:

      1. (1) The contract provides for management services furnished by the passive contractor to the contract producer in the production of the commodity.
      2. (2) The passive contractor has a contractual relationship with the active contractor involving the production of the commodity.
2. 2. A production contract is executed when it is signed or orally agreed to by each party or by a person who is authorized by a party to act on the party’s behalf.

99 Acts, ch 169, §3, 22 – 24

Referred to in §202.1