Clause map
The clauses that decide what your recyclables earn
A rebate agreement is a price formula wrapped in fourteen other clauses, and each of them can add to or take away from the formula. Here they are in the order most contracts use, with what each one does to the money.
- § 1 Material and specificationWhich grade you are selling, and the quality limits the buyer can hold you to.
- § 2 Pricing formulaHow the price per ton (or per unit) is worked out each month.
- § 3 Index referenceWhich published price the formula reads, for which region, side of the range and month.
- § 4 Floor and capThe minimum the buyer pays when the formula falls, and any ceiling when it rises.
- § 5 Freight and pickupWho moves the material, at whose cost, and how often trailers are swapped.
- § 6 Baler and equipmentWho supplies the baler or compactor, what it costs, and what happens when it breaks.
- § 7 Load minimumsThe minimum weight or count per pickup, and the charge for a light load.
- § 8 Contamination and rejectionWhat happens when a load misses the specification: downgrade, claim or rejection.
- § 9 MoistureThe moisture limit, how it is measured, and how wet weight is deducted.
- § 10 Weights, tickets and auditWhose scale sets the paid weight, what ticket you get, and your right to check.
- § 11 Payment termsWhen you are paid, how (cheque, transfer or credit), and what the statement shows.
- § 12 Title and riskWhen the material stops being yours, and who carries the loss if a trailer burns.
- § 13 Term and renewalHow long the agreement runs, and whether it renews itself.
- § 14 Exclusivity and first refusalWhether all your material must go to this buyer, and whether it can match other bids.
- § 15 Termination and disputesHow either side can end the agreement early, and what happens when you disagree.