Posts Tagged ‘commercial transactions’

Terms and Condition Statements – An Opportunity and a Caution

Tuesday, March 29th, 2011

Every state has laws that control commercial transactions, most notably the Uniform Commercial Code.  Under these laws, many different aspects of the sale and its impact on both sides of the deal are defined as to warranty, revocation, rights of collection and numerous other aspects.  These laws almost universally provide that they apply only if the parties have not otherwise agreed in their sale contract.  This gives the parties the ability to define for themselves what terms and conditions will apply to the transaction.  (more…)

Standby Letters of Credit

Friday, April 2nd, 2010

The use of standby letters of credit in commercial transactions continues to grow.  In the case of a commercial letter of credit, it is intended by the parties that the credit under the letter will be drawn in the completion of a transaction.  In the case of a standby letter, the credit will be drawn only after some party has failed to meet its obligations.  Obtaining a letter of credit in lieu of a cash bond or collateral is viewed with increasing favor by businesses, governments, and the courts. The attractiveness is due to the essential nature of a letter of credit transaction.  With a letter of credit, the lender’s credit, rather than the credit of the borrower, is on the line.  This provides parties with certain advantages in bankruptcy and greatly increases the probability of ultimate payment. (more…)