Are you a cattle producer who would like to buy or sell an embryo flush? If you follow this blog, you know that I’m a fan of getting these types of agreements in writing. Here are some questions to ask before drafting an embryo flush agreement:
1. Will there be a minimum number of Grade No. 1 embryos that are acceptable for freezing (e.g., 5-6 embryos)?
2. Will there be an embryo split over a certain minimum between the buyer and seller?
3. When should the donor cow be superovulated and flushed?
4. If the first flush does not give the buyer the minimum number of Grade No. 1 embryos, when will the donor cow be flushed again?
5. Who is paying for the expenses associated with the embryo flush including the superovulation of the donor cow, labor, transportation, use of a licensed cattle embyologist, shipment/cost of semen used with artificial insemination on the donor cow, and shipment of the frozen embryos?
6. If you are retaining a flush after the sale of a heifer at a cattle sale, should the agreement be binding if the buyer later sells the bred heifer to another owner?
7. How should disputes be resolved?
8. What choice of law do you wish to use? (especially important if the transaction is across state lines or international)
9. Are the parties forming a general partnership and splitting profits? If not, I suggest that the Flush Agreement specifically state that the parties are not creating a partnership, agency or any other type of business organization.
10. Will sexed semen be used to artificially inseminate the donor cow?
Like other types of embryo transfer contracts, I work on Flush Agreements on a flat-fee basis. I would be able to help you draft a standard flush agreement that you can use on your farm for similar transactions. Please remember that contract law is a state law issues so you are encouraged to work with an attorney licensed in your jurisdiction.
Comments 1
Question if a cattle breeder 1 has made a verbal agreement with a cattle breeder 2 who purchases one of cattle breeder #1’s cows to obtain a flush at the breeder # 1s own personal expense and then breeder # 2 who bought the cow verbally agreed to breeder #1’s flush terms, then breeder # 2 sells the cow to a new owner. Can the new owner be ordered legally to comply with the old flush verbal agreement from breeder #1 or not ? I would think not if it was verbally and the new owner is not held to a contract. Verbal contracts are hard to enforce.