In a contract or business agreement, the representations and warranties act as assurances given by one party to the other. While the actual contract and terms of the agreement may differ, the ideas of representation of facts and warranty to protect the involved parties are the same across all contracts.
A Real Estate Sale Contract functions as a legally binding agreement between two parties concerning the terms of purchase or transfer of real property.
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This price action is important to feeder cattle producers because cattle feeders have to purchase feeder cattle based on the price expectation of live cattle five to seven months down the road. If the previous six months are any indication of the next six months then live cattle futures will continue to be severely discounted until close to the Feeder cattle typically need to gain more than 500 pounds before they reach slaughter weights, so corn prices have a big impact on feeder cattle prices. Live cattle, on the other hand, are ‘finished’ products that are ready for sale to slaughterhouses.
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