Section 581 | “Future”

(1)In this Part “future” means a contract for the sale of property under which delivery is to be made—

(a)at a future date agreed when the contract is made, and

(b)at a price so agreed,

but this is subject to subsection (3).

(2)For the purposes of subsection (1)(b), a price is agreed when the contract is made even if—

(a)the price 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

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

(3)References in this Part to a future do not include a contract whose terms—

(a)provide—

(i)that, after setting off their obligations to each other under the contract, a cash payment is to be made by one party to the other in respect of the excess, if any, or

(ii)that each party is liable to make to the other party a cash payment in respect of all that party's obligations to the other under the contract, and

(b)do not provide for the delivery of any property.

(4)Subsection (3) does not prevent a future whose underlying subject matter is currency from being a future.