The paper deals with the institutional problems in the cereal sector in the Czech Republic. The information was obtained in the frame of Project PHARE-ACE No P97-8098-R "Institutional Economics in the Agri-Food Business: How can Structural Policy help to Integrate EU?" and the article is part of final report of this project. The research was performed in the Czech Republic in 2000 by means of a questionnaire method and a method of interviews with managers of individual farms of cereal sector which is one of the most important sectors of agriculture in CR. Problems of the execution of property rights in supplier-customer relations in cereal sector are following (institutional view): poor enforceability of property rights, sale for cash, refraining from long-term contracts, decrease of trust between business partners and trust in legal institutions, increase of transaction costs, lack of business ethics etc.