Promises contract: a payment and loans instrument

[smartcontracts100]

Not many users in securities area ... i moved it here
------------------------------------------------------------------------------------------------

Promises contract: a payment and loans instrument
similar to forward contract



What do you think ?

Benefit for buyer:
If your a buyer you can buy product "X" or service "Y" at today's price instead of future price .

Benefit for company:
Company gets a loan without paying interest

Example:
Promise No: 00000001


                            Coca Cola Company Promise
                                VERIFIED COMPANY

 We promise that we will send to you :
-----------------------------------------------------------------------------
 10 bottles of Coca Cola
-----------------------------------------------------------------------------
 Product(s) Manufacturing Date: 04/11/2021 4:55 AM  
-----------------------------------------------------------------------------
 Product(s) Expiration Date: 06/23/2022 9:55 AM  
-----------------------------------------------------------------------------
 Shipping Date: 11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Expected Delivery Date:  11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Shipping Fee : FREE                                                              
-----------------------------------------------------------------------------
 Price: 0.05 BTC/ETH/USD for this promise
-----------------------------------------------------------------------------
                         Promise Terms And Conditions
-----------------------------------------------------------------------------
                      By Clicking The "BUY PROMISE" button
 i agree with the Coca Cola Company Terms And Conditions
-----------------------------------------------------------------------------

                                 BUY PROMISE






-------------------------------------------------------------------------------------------------------------------------------------------


The companies have to tweak the price ,and buyers of promises have to be careful same with shares,cryptos,futures,options etc ,it's a "financial instrument" it can't guarantee 100% success for buyer ,same case  for company that sells it,they have to be careful using it . Lawyers have to find a way to write a promise purchase contract.

Let's say i am a buyer and seller has salt or honey or gold etc for sale  ...

Example:
Promise No: 00000002


                            Tiffany & Co  Promise
                                VERIFIED COMPANY

We promise that we will send to you :
-----------------------------------------------------------------------------
2 18k gold rings,weight 10g
-----------------------------------------------------------------------------
 Product(s) Manufacturing Date: 04/11/2021 4:55 AM
-----------------------------------------------------------------------------
 Product(s) Expiration Date: no expiration date
-----------------------------------------------------------------------------
 Shipping Date: 11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Expected Delivery Date:  11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Shipping Fee : FREE                                                              
-----------------------------------------------------------------------------
 Price:2000 USD for this promise
-----------------------------------------------------------------------------
                         Promise Terms And Conditions
-----------------------------------------------------------------------------
         By Clicking The "BUY PROMISE" button
 i agree with Tiffany & Co Terms And Conditions
-----------------------------------------------------------------------------

                                 BUY PROMISE

This is a good promise for people that are engaged and want to get married ,but don't know when. They will not need to worry about price of gold after they buy promise ,they can even make money if gold price increases.




Example:
Promise No: 00000003


                            BeeHive Ltd  Promise
                                VERIFIED COMPANY

 We promise that we will send to you :
-----------------------------------------------------------------------------
50kg of pure unfiltered honey
-----------------------------------------------------------------------------
 Product(s) Manufacturing Date: 04/11/2021 4:55 AM
-----------------------------------------------------------------------------
 Product(s) Expiration Date: no expiration date
-----------------------------------------------------------------------------
 Shipping Date: 11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Expected Delivery Date:  11/10/2021 8:21 PM
-----------------------------------------------------------------------------
 Shipping Fee : FREE                                                              
-----------------------------------------------------------------------------
 Price:10000 USD for this promise
-----------------------------------------------------------------------------
                         Promise Terms And Conditions
-----------------------------------------------------------------------------
         By Clicking The "BUY PROMISE" button
 i agree with BeeHive Ltd Terms And Conditions
-----------------------------------------------------------------------------

                                 BUY PROMISE


If buyer payes 10000 usd now  he does not have to pay 20000 usd in 2021 ,protection against inflation .



----------------------------------------------------------------------------------------------------------------------------------------------------------------------------


It can be turned in to this:
(For refund : Buyer has to agree with country legal and company refund policy,company has to respect same refund rules as if they sell the product ) :

                            Tiffany & Co  Promise
                              VERIFIED COMPANY

We promise that we will send to you :
-----------------------------------------------------------------------------------------
2pcs 18k pcs rose gold rings,weight 10g  
-----------------------------------------------------------------------------------------
"Buyer can add here color,size or any other info
using a form before showing promise"
-----------------------------------------------------------------------------------------
 Product(s) id / Serial / Bar Code : 00000001,00000002
-----------------------------------------------------------------------------------------
 Product(s) Manufacturing Date: 04/11/2021 4:55 AM
-----------------------------------------------------------------------------------------
 Product(s) Expiration Date: no expiration date
-----------------------------------------------------------------------------------------
 Shipping Date: 11/10/2021 8:21 PM
-----------------------------------------------------------------------------------------
 Expected Delivery Date:  11/10/2021 8:21 PM
-----------------------------------------------------------------------------------------
 Shipping Fee : FREE                                                              
-----------------------------------------------------------------------------------------
 Price:2000 USD for this promise
------------------------------------------------------------------------------------------
Promise callable (similar to bond) :Yes or No
------------------------------------------------------------------------------------------
                       Promise Terms & Refund Policy
-------------------------------------------------------------------------------------------
                    By Clicking The "BUY PROMISE" button
 i agree with Tiffany & Co Terms and Refund Policy
--------------------------------------------------------------------------------------------

                                   BUY PROMISE

------------------------------------------------------------------------------------------------------------------------------------------------------


Can be added to shopping carts or to markets easy

Step 1


Step 2


Step 3



Orderbooks to buy / sell promises on a secondary market can be created also...

[webtricks]

I don't understand, is 'Promises Contract' already a thing or are you proposing a new concept? If this is your new idea then I don't see it very differently from the commodity futures. The only difference I see is that the seller of the contract here is the company itself.

Also couple of things are unclear from your post:

• Whether the contract can only be settled with actual delivery of the underlying goods or can it be settled in cash with netting off? If the contract can be settled with net-off, will the company buy-back the contract and pay the current price of the goods to the buyer?
• You said a secondary market can also be created for 'Promises'. If secondary market is created, will the company make the delivery of goods to the current holder of 'Promise' or once the promise is entered into secondary market, it can only be settled in cash?

[smartcontracts100]

I don't understand, is 'Promises Contract' already a thing or are you proposing a new concept? If this is your new idea then I don't see it very differently from the commodity futures. The only difference I see is that the seller of the contract here is the company itself.

Also couple of things are unclear from your post:

• Whether the contract can only be settled with actual delivery of the underlying goods or can it be settled in cash with netting off? If the contract can be settled with net-off, will the company buy-back the contract and pay the current price of the goods to the buyer?
• You said a secondary market can also be created for 'Promises'. If secondary market is created, will the company make the delivery of goods to the current holder of 'Promise' or once the promise is entered into secondary market, it can only be settled in cash?

1.Company should deliver the goods at the end in my opinion ,if i buy a promise i buy it to buy the goods ,or sell it to someone that needs the goods .
2.Company should make the delivery even if in secondary...the promise just changes owner like bitcoin changes owner.

[el kaka22]

So wait, with this idea, I am paying beforehand, for something I will get later?
That seems like pre-order to me and that doesn't really make sense at this current stage for regular products neither.

Money today that you pay is more valuable than the product you will get later, I get that product could cost more in the future when you want to buy but at the same time consider the fact that fiat could become less valuable as well, due to inflation, which means the 100 dollars you pay today for 100 bottles of cola, could be 120 dollars in 2 years but 100 dollars purchasing power could become equal to 120 dollars in 2 years as well.

Hence I am not sure if this is a good idea or not. I would say this all depends on the product you are pre-paying for as well.

[smartcontracts100]

So wait, with this idea, I am paying beforehand, for something I will get later?
That seems like pre-order to me and that doesn't really make sense at this current stage for regular products neither.

Money today that you pay is more valuable than the product you will get later, I get that product could cost more in the future when you want to buy but at the same time consider the fact that fiat could become less valuable as well, due to inflation, which means the 100 dollars you pay today for 100 bottles of cola, could be 120 dollars in 2 years but 100 dollars purchasing power could become equal to 120 dollars in 2 years as well.

Hence I am not sure if this is a good idea or not. I would say this all depends on the product you are pre-paying for as well.

How is a coca cola bottle of juice be worth less if manufacturing date is 2022 and you get it same year 2022 ?

if 1L coca cola bottle today in 2020 is 2 usd , do to inflation let's say 5% per year ,you would pay around 2.1 usd in 2022 for that bottle,without compounding inflation.
Trick is to buy things that people need and that they are "liquid"...

How sure are you that your salary will increase with inflation in 2022 ?

What if price of product increases do to other conditions ...demand,mother nature,raw materials etc... price could be 8 usd for a 1L bottle of coca cola in 2022...
Or price could drop to 0.1 usd per bottle ...

"Promises" work with cryptos / tokens also

Hope you understand now the use of a promise.

[fillippone]

You have just re-invented the forwards. And you are late a couple of centuries late, at least (you may have heard of the infamous tulip bubble? There, the underlying were forwards).

You might check my thread of futures: a standardised form of forward agreements.
Everything you wanted to know about BTC futures but were afraid to ask!

[HabBear]

It's an idea worth exploring, but it probably only proves useful in markets/industries where price volatility is common...commodities businesses, such as oil, gas, corn, etc. Where a buyer needs large volumes of the product always and therefore is victim to the price fluctuations. Those fluctuations add uncertainty to the buyer's financial position/stability.

I don't quite get the need for the loan for the seller. The buyer is already buying the contract and locking in the price.

Why does the seller also need a loan?