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[Proposal] Manufacturing/Supply Contracts

Author
Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#1 - 2012-07-28 23:07:35 UTC  |  Edited by: Steve Ronuken
A new contract with the following features:

Collateral on both sides. The side that fails/cancels a contract gets nothing, the side that doesn't gets it all. If a contract times out, the issuer gets it.
Materials being provided.
Materials being requested.
Payment to the Issuee, on completion of the contract (from the Collateral. Doesn't need to match the entire value)




This way, someone can issue a contract saying 'I want X of this thing, here are the materials to make it. Must be completed by this date' in relative security. Or they can leave the materials out, but stump up the entire value in a way that the person that accepts it can't be left with something they personally don't want.

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Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

Spadeus
Republic University
Minmatar Republic
#2 - 2012-07-29 20:02:39 UTC
I put up a similar idea but I think the model to implement it is simpler.

Rather than double collateral, which servees limited purpose, it works more like a courier contract. Fulfill the contract, get the isk, its that simple.

I think single collateral makes a LOT of sense. Lose the collateral if you either fail the contract or cancel it or it times out.
Danika Princip
GoonWaffe
Goonswarm Federation
#3 - 2012-07-30 01:27:42 UTC
What's wrong with a buy order?
Plaude Pollard
Aliastra
Gallente Federation
#4 - 2012-07-31 11:22:15 UTC
Danika Princip wrote:
What's wrong with a buy order?

Nothing, but if you have agreed with an industry-corp to provide you with a certain amount of stuff at a certain price, you'll most likely want un-forgable documentation of the agreement. And as far as I know, text is way too easy to forge.

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Steve Ronuken
Fuzzwork Enterprises
Vote Steve Ronuken for CSM
#5 - 2012-07-31 11:30:35 UTC
Plaude Pollard wrote:
Danika Princip wrote:
What's wrong with a buy order?

Nothing, but if you have agreed with an industry-corp to provide you with a certain amount of stuff at a certain price, you'll most likely want un-forgable documentation of the agreement. And as far as I know, text is way too easy to forge.


Exactly (and it avoids taxes)

For example, someone building carriers wants a bunch of minerals from High-sec. But transporting them raw isn't a good idea. so you arrange for them to be converted into 425mm Railgun Is.

Either you have to find an indy corp willing to risk, say, 10 billion of their own isk on something that someone could then just say 'nah' to, or you risk someone running away with your materials.

These wouldn't be particularly public contracts. just contracts between corps, protecting both.

Woo! CSM XI!

Fuzzwork Enterprises

Twitter: @fuzzysteve on Twitter

FloppieTheBanjoClown
Arcana Imperii Ltd.
#6 - 2012-07-31 15:29:07 UTC
Buy orders and WTB contracts can be cancelled after a build is started. This would leave the industrialist with a job they wouldn't have otherwise started, wasting their time and resources having to get something to market that they wouldn't otherwise be dealing with. I can see the value in an industrial contract.

Let's say I want a Drake. There's an industrialist in the local mission hub that has a high-ME Drake BPO. The easiest way to think of this is a courier contract inside of an item exchange: he offers a Drake in exchange for an amount of items and/or isk. Along with this, he promises collateral and a delivery time. As soon as you accept, he receives the requested items and he pays the collateral into escrow. Once the Drake is delivered, he gets his cash back.

I see this mostly being used inside corps and alliances where just-in-time manufacturing makes the best use of local resources.

Founding member of the Belligerent Undesirables movement.