Rights under a contract for the sale of a commodity or property of any other description under which delivery is to be made at a future date and at a price agreed upon when the contract is made.

• Notes

  1. (1)

     This paragraph does not apply if the contract is made for commercial and not investment purposes.

  2. (2)

     A contract shall be regarded as made for investment purposes if it is made or traded on a recognised investment exchange or made otherwise than on a recognised investment exchange but expressed to be as traded on such an exchange or on the same terms as those on which an equivalent contract would be made on such an exchange.

  3. (3)

     A contract not falling within Note (2) above shall be regarded as made for commercial purposes if under the terms of the contract delivery is to be made within seven days.

  4. (4)

     The following are indications that any other contract is made for a commercial purpose and the absence of any of them is an indication that it is made for investment purposes—

     1. (a)

        either or each of the parties is a producer of the commodity or other property or uses it in his business ;

     2. (b)

        the seller delivers or intends to deliver the property or the purchaser takes or intends to take delivery of it.

  5. (5)

     It is an indication that a contract is made for commercial purposes that the price, the lot, the delivery date or the other terms are determined by the parties for the purposes of the particular contract and not by reference to regularly published prices, to standard lots or delivery dates or to standard terms.

  6. (6)

     The following are also indications that a contract is made for investment purposes—

     1. (a)

        it is expressed to be as traded on a market or on an exchange ;

     2. (b)

        performance of the contract is ensured by an investment exchange or a clearing house ;

     3. (c)

        there are arrangements for the payment or provision of margin.

  7. (7)

     A price shall be taken to have been agreed upon when a contract is made—

     1. (a)

        notwithstanding that it is left to be determined by reference to the price at which a contract is to be entered into on a market or exchange or could be entered into at a time and place specified in the contract ; or

     2. (b)

        in a case where the contract is expressed to be by reference to a standard lot and quality, notwithstanding that provision is made for a variation in the price to take account of any variation in quantity or quality on delivery.