Meaning and essentials of a contract of sale
A contract of sale is an agreement whereby a seller transfers or agrees to transfer the ownership (property) in goods to a buyer for a price; when property passes immediately it is a sale, and when transfer is deferred or conditional it is an agreement to sell. This framework underpins trade and inventory finance, receivables…
Read article Contract of Agency: A Banking-Friendly Guide
A contract of agency creates a legal relationship where one person (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties, binding the principal within the agent’s authority. This framework enables distribution partnerships, correspondent banking, syndications, and outsourced service models in finance. Definition Essential characteristics Rules Types of…
Read article Contracts of indemnity in banking
A contract of indemnity is an agreement where one party promises to compensate another for loss caused by specified acts or events, typically arising from the promisor’s conduct or that of a third person, and is widely used in banking for letters of indemnity, escrow, agency, custody, and transactional risk allocation. Meaning Rights of indemnity…
Read article Meaning and essentials of a contract
A contract is an agreement enforceable by law, formed when parties intentionally create legal obligations through offer, acceptance, and consideration under free consent for a lawful object. In banking, contracts underpin every product and service—accounts, loans, guarantees, securities, and digital mandates—so validity requirements must be embedded in documents and processes. Meaning of contract Key components…
Read article Contract of Pledge: A Banking-Focused explainer
A contract of pledge is the bailment of movable goods as security for payment of a debt or performance of a promise; the pledgor (pawnor) delivers possession while ownership remains, and the pledgee (pawnee) gains a limited, security interest with rights on default. This structure underpins core banking products like gold loans, pledge of warehouse…
Contracts of Bailment: A Practical Guide for Banking
A contract of bailment is the delivery of movable goods from one person to another for a specific purpose, with an obligation to return or dispose of them as directed after the purpose is fulfilled. In bailment, possession transfers, but ownership remains with the bailor. Meaning Essential features Bailor’s disclosure Bailee’s care of goods Mixing…
Read article