Law on Sales
CREDIT TRANSACTIONS
Credit Transactions include all transactions involving the purchase or loan of goods, services, or money in the present with a promise to pay or deliver in the future. Since science and technology has made our lives easier and more convenient, it paves way for less security in the long haul. There are two main advantages that these credit transactions give:
1. Credit Transactions can be used anytime and at any place for buying goods and services that will be paid in a bank. 2. It will provide security because there will be no need to carry large amounts of money or cash in wallets that may result in theft. 1
Basically, credit transactions are contracts of security. Security is something given, deposited or serving as a means to ensure the fulfillment or enforcement of an obligation or of protecting some interest in the property. The two types of security are personal security, which is when an individual becomes a surety or a guarantor and real security when an encumbrance is made on property.2 There are two types of credit transactions namely:
1. Secured transactions or contracts of real security – supported by collateral or an encumbrance of property. 2. Unsecured transactions or contracts of personal security – supported only by a promise of personal commitment of another such as a guarantor or surety.
BAILMENT
Bailment comes from the French word “bailler” which means, “to deliver”. It is the delivery of property of one person to another in trust for a specific purpose with a contract that the trust shall be faithfully executed and the property returned or duly accounted for when the special purpose is accomplished or kept until the bailor reclaims it. To be legally enforceable, a bailment must contain all the elements of a valid contract, which are consent, object and cause or consideration. However, a bailment may also be created by operation of the law.
PARTIES IN BAILMENT
1. Bailor – the giver;
Credit Transactions include all transactions involving the purchase or loan of goods, services, or money in the present with a promise to pay or deliver in the future. Since science and technology has made our lives easier and more convenient, it paves way for less security in the long haul. There are two main advantages that these credit transactions give:
1. Credit Transactions can be used anytime and at any place for buying goods and services that will be paid in a bank. 2. It will provide security because there will be no need to carry large amounts of money or cash in wallets that may result in theft. 1
Basically, credit transactions are contracts of security. Security is something given, deposited or serving as a means to ensure the fulfillment or enforcement of an obligation or of protecting some interest in the property. The two types of security are personal security, which is when an individual becomes a surety or a guarantor and real security when an encumbrance is made on property.2 There are two types of credit transactions namely:
1. Secured transactions or contracts of real security – supported by collateral or an encumbrance of property. 2. Unsecured transactions or contracts of personal security – supported only by a promise of personal commitment of another such as a guarantor or surety.
BAILMENT
Bailment comes from the French word “bailler” which means, “to deliver”. It is the delivery of property of one person to another in trust for a specific purpose with a contract that the trust shall be faithfully executed and the property returned or duly accounted for when the special purpose is accomplished or kept until the bailor reclaims it. To be legally enforceable, a bailment must contain all the elements of a valid contract, which are consent, object and cause or consideration. However, a bailment may also be created by operation of the law.
PARTIES IN BAILMENT
1. Bailor – the giver;