Article 168 Contractual relations

Without prejudice to F1... Article 125 concerning the sugar sector, if F2the Secretary of State decides, in respect of agricultural products from a sector listed in Article 1(2), other than milk and milk products and sugar:

such a contract or such an offer for a contract shall fulfil the conditions laid down in paragraphs 4 and 6 of this Article.

Where F5the Secretary of State does not make use of the possibilities provided for in paragraph 1 of this Article, a producer, a producer organisation or an association of producer organisations, in respect of agricultural products in a sector referred to in Article 1(2) other than the milk, milk products and sugar sector, may require that any delivery of its products to a processor or distributor be the subject of a written contract between the parties and/or be the subject of a written offer for a contract from the first purchasers, under the conditions laid down in paragraph 4 and in the first subparagraph of paragraph 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory without prejudice to the possibility for the parties to make use of a standard contract drawn up by an interbranch organisation.

Where the F6Secretary of State decides that deliveries of the products covered by this Article by a producer to a processor must be covered by a written contract between the parties, F7the Secretary of State shall also decide which stage or stages of the delivery shall be covered by such a contract if delivery of the products concerned is made through one or more intermediaries.

F8The Secretary of State must ensure that any provisions made under this Article do not impair the proper functioning of the F9market in the United Kingdom.

In the case described in paragraph 2, the F10Secretary of State may establish a mediation mechanism to cover cases in which there is no mutual agreement to conclude such a contract, thereby ensuring fair contractual relations.

Any contract or offer for a contract referred to in paragraphs 1 and 1a shall:

By way of derogation from paragraphs 1 and 1a, a contract or an offer for a contract shall not be required where the products concerned are delivered by a member of a cooperative to the cooperative of which he is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4.

All elements of contracts for the delivery of agricultural products concluded by producers, collectors, processors or distributors, including those elements referred to in point (c) of paragraph 4, shall be freely negotiated between the parties.

Notwithstanding the first subparagraph, one or both of the following shall apply:

The second subparagraph shall be without prejudice to the producer's right to refuse such a minimum duration provided that he does so in writing. In this case, the parties shall be free to negotiate all elements of the contract, including those elements referred to in point (c) of paragraph 4.

The Secretary of State must ensure that any provisions made to implement the options referred to in this Article do not impair the proper functioning of the market in the United Kingdom.

The Secretary of State may make regulations setting out the measures necessary for the uniform application of points (a) and (b) of paragraph 4, and paragraph 5, of this Article.