Delivery contracts

Delivery contracts that are not honoured by licensees

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Can the Canadian Grain Commission (CGC) help me if a licensee does not honour a contract for delivery?

The CGC routinely deals with disputes involving licensees and producers. However, the CGC does not have the power to enforce contracts. The Canada Grain Act does not give the CGC the power to intervene in contracts involving the production, delivery, sale, purchase or price of grain. The Act empowers the CGC to ensure that payment on demand is made for grain once it is delivered, based on the agreed price as stated on the receipt issued by the licensee on delivery.

Who can help me in a contract dispute, where a licensee will not accept delivery?

If you find yourself in a situation such as this, our advice would be to seek legal counsel, just as you would if it were any other breach of contract matter.

How does the CGC protect producers?

The CGC operates under the authority of the Canada Grain Act. The Act contains provisions that offer producers some protection. These include

• Providing impartial grading advice when a producer disagrees with the grade received at a licensed primary elevator

• Producer payment protection (in situations where CGC-licensed grain companies refuse or are unable to pay eligible producers for grain that has been delivered)

If you have questions or concerns, contact the CGC Assistant Commissioner for your area, or call 1-800-853-6705.