Bad Contracts: The Roots Of Hemp Litigation

This article was originally published on Hoban Law Group, and appears here with permission.

This article is authored by Darren Kaplan and David Bush.

Bad contracts cause disputes. Many hemp lawsuits owe their origin to contracts that are poorly specified, unclear, incomplete, or self-contradictory. Striving to write good contracts is the first line of defense against the risk of disappointed expectations and costly litigation.

Hemp Business usually starts with the best intentions

Companies who do business together hardly ever set out with bad intentions. When businesses collaborate, each believes that it will benefit from the other’s unique contributions. They want each other to succeed.

In the hemp industry, it is common for companies across the supply chain to seek out one another’s talents and resources for shared projects. By non-exhaustive example, when hemp farmers buy their seed, they buy from seed producers; when oil processors buy hemp biomass, they buy from hemp farmers or brokers, and when product manufacturers need extract, they procure it from processors. Over the cycle of seed to final sale, hemp passes through many hands.

A well-drafted contract captures the parties’ intent

It is in these transactions where the value of a well-drafted contract is so clear. To continue with the …

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