Hemp Litigation: What Does a Good Hemp Supply Agreement Look Like?

We write and speak often about hemp litigation and the importance of a good hemp supply contract. That’s because a common thread in many of the cases winding through the courts is the lack of a contract that clearly defines the expectations and obligations of the hemp grower and purchaser.  Here are a few of those articles:

To be sure, a good hemp supply agreement does not mean there will not be litigation.  But it can reduce the odds of litigation and hemp clarify claims for breach of contract. A case recently filed in Marion County, Oregon, New Earth BioSciences, LLC v. Terra Ridge Farms, LLC et al., 20CV22732, (“New Earth”) attaches the hemp supply agreement and, unlike many of the cases discussed in prior posts, the agreement is a pretty good one. (Email me if you’d like a copy of the Complaint).

So let’s take a look at some of the elements of the Hemp Supply Agreement (“HSA”) in New Earth. The stated purpose of the HSA is to define the relationship between Terra Ridge Farms (the grower, sourcer, transporter and seller of raw industrial hemp) and New Earth BioSciences  (the purchase and extractor).

Clear Definitions

One of

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