by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is Unencumbered?An asset is unencumbered when it is clear of any debt, liens, or claims. Conversely, when a property is encumbered, it means it is not free of financial liability or debt.An asset may be encumbered if it is subject to any legal claim, such as when...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is Subcontracting? Subcontracting refers to a situation in which a main contractor hires other individuals to perform a certain amount of work or specific tasks in a project. The main individual who undertakes a contract with a company (the general contractor)...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Sight Draft? A sight draft is a form of bill of exchange which is payable as soon as it is presented for payment. This is in contrast to a time draft, which is payable on or after a stated period of time. How Does a Sight Draft Work? Sight drafts are...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Continuation Statement? A continuation statement refers to modification or alteration made to a UCC-1 (financing statement) which makes it effective beyond its normal expiration date. The effect of a continuation statement is that a lien placed by a lender...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is Contract Theory? Contract theory is a theory that seeks to understand how contractual arrangements such as legal agreements are made. This theory examines the existence of a contract and how it was constructed or developed. Contract theory entails an analysis...
by Jason M. Gordon | Feb 23, 2025 | Commercial Law: Contract, Payments, Security Interests, & Bankruptcy
What is a Commercial Paper Funding Program (CPFP)? A Commercial Paper Funding Program is a system established by the United States Federal Reserve Board to improve the markets short-term liquidity. Basically, the CPFP program provided short-term funding to the United...
