Commercial Law: Leasing, Factoring, and Bankruptcy

Leasing and Factoring Contracts

The leasing contract in general terms is a lease-purchase. The contracting parties to the factoring contract are called: Client, debtor, and factor. The main document that takes the factoring contract in their operations is the Bill. The radical importance of designating the address by the client in the contract is in bank accounts: to notify in the event of legal action against them.

Insurance Contract Fundamentals

The document where the terms of the insurance contract are immersed is called the Policy. The price or economic contribution made by the insured to the insurance company is called the Premium (Prima). The subjects of the insurance contract are the insurer, insured, policyholder, and beneficiary.

Bankruptcy Proceedings and Principles

Interests involved in bankruptcy include: the debtor, creditors, the community, and any third parties. The principle of par condicio creditorum refers to the more or less equal distribution among creditors of the proceeds from the realization of the assets. Bankruptcy is based on budgets: the cause and action of bankruptcy. The immediate cause of bankruptcy is a financial situation of inability to pay its obligations or cessation of payments.

Notifications and Records in Bankruptcy

In terms of notifications regarding bankruptcy: the general rule is the daily reports by the state, but there is a special rule on notices, subject to use personal notifications and cedula. The books that comprise the record of bankruptcy are: the major notebook, the bankruptcy administration notebook, and accessory notebooks (executive proceedings against the bankrupt, challenges, and incidents).

Bodies and Meetings of the Bankruptcy

The bodies of the bankruptcy are: the supervision of the bankruptcy court, the bankruptcy trustee, and the creditors' meeting or assembly. The three classes of existing creditors' meetings in the bankruptcy proceedings are: the first meeting of creditors, meetings to discuss and agree on conventions, and ordinary and extraordinary meetings. The receivership ends upon the dismissal and conclusion of agreements.

Classification of Claims and Asset Management

First Class Claims

• Court costs and interest to creditors
• Funeral expenses required of the deceased debtor
• The debtor's medical expenses
• Pension contributions
• Legal or contractual allowances allocated to workers

The Management Notebook

Another book in the bankruptcy proceedings is the management notebook. It contains a record of the failed property within the bankruptcy proceeding, their pricing, and all acts aimed at achieving the same by the trustee in bankruptcy. With the proceeds, the trustee pays the creditors their quota credit as recognized or verified, invoking their preference (seizure, making inventory, conservation, and production of goods). Art 27 N° 7 and 64 inc. 3rd bankruptcy law.