A foreign future refers to a contract that involves the purchase or sale of a commodity for future delivery. This contract is governed by the rules of a board of trade located outside the United States. Essentially, it is an agreement made between parties to trade commodities at a future date, with the terms set by international trading standards.
The term foreign future is primarily used in the context of bankruptcy law, particularly in cases involving commodity brokers. It is relevant in both civil and financial legal practices, especially when dealing with liquidation processes. Users may find it beneficial to utilize legal forms related to bankruptcy and commodity trading, which can be accessed through platforms like US Legal Forms.
Here are a couple of examples of abatement:
One example of a foreign future could involve a U.S. company entering a contract to purchase oil from a supplier in the Middle East, with delivery scheduled for six months later. This contract would be governed by the trading rules of an international exchange.
(Hypothetical example) A farmer in Brazil agrees to sell a specific quantity of coffee beans to a U.S. importer, with the transaction set to occur in the next year, based on the pricing established by a foreign commodity exchange.
Foreign futures are defined under 11 USCS § 761, which is part of the U.S. Bankruptcy Code. This section outlines the specifics of commodity broker liquidation, including how foreign futures are treated in bankruptcy proceedings.
| Term | Definition | Key Differences |
|---|---|---|
| Domestic Future | Contract for the purchase or sale of a commodity for future delivery within the United States. | Governed by U.S. regulations, unlike foreign futures. |
| Forward Contract | A private agreement between two parties to buy or sell an asset at a specified future date for a price agreed upon today. | Not necessarily traded on an exchange and may involve different legal implications. |
If you find yourself involved with foreign futures, it's important to understand the legal implications, especially if bankruptcy is a concern. Consider consulting with a legal professional who specializes in bankruptcy or commodity trading. Additionally, you can explore US Legal Forms for templates that can assist you in managing your legal documents effectively.
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A foreign future is a contract for the purchase or sale of a commodity for future delivery, governed by the rules of an international board of trade.