Legal Question in Business Law in California

Your proposed transaction, at least as described, raises a host of questions. Some of the questions have to do with how you protect yourself as a finder. The perhaps more serious questions address whether the transaction, and your role is legal.

First, people who act strictly as "finders," i.e., whose role is limited to introducing a prospective buyer and seller, are generall exempt from licensing requirements imposed upon persons who act as brokers or dealers. However, you may be treading dangerously near the margin of being either a dealer (or broker) in agricultural commodities, or a dealer (or broker) in securities. So, there is a strong possibility that your deal will place you afoul of a professional licensing or bonding requirement.

Next, if you are inexperienced in deal-making in this industry, and have performed valuable services without knowing exactly which party is obliged to compensate you, there's a darn good chance that no one ins obligated to pay you.

Doing big deals in regulated areas as a neophyte is a recipe for disaster. Find a lawyer near you who has agribusiness experience. Don't expect to be paid by anyone unless (a) you have any license required to do this deal, and (b) have a commitment from one party or the other to pay you before you give away the merchandise -- which in this case is the identity of the buyer.

Frankly, I'm a little surprised that a deal like this is even possible, because markets for ag commodities like soybeans are highly organized and buyers and sellers know about and are able to do deals on favorable terms through established markets and using elevators that buy and sell millions of bushels of beans every season.

You should be advised per the Uniform Commercial Code and if inadquate have an agreement drafted to meet your needs. Has this matter been resolved? Contact me directly at 619 222-3504 or e-mail me at [email protected]