business law

Most Favored Nation

Definition

A clause frequently included in bilateral investment treaties ("BITs") which provides that a host state shall treat all of its trading partners equally. Under such a clause, if the host state lowers a tariff for one trading partner, it must lower it for all trading partners.

Equitable Subordination

In the law of corporations, describes decision by a court to subordinate a controlling shareholder’s claims upon debt owed her by her own firm, to those of other  “outside” (i.e., bona fide third party) creditors in bankruptcy.

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Accord

Definition

1)  A harmonious agreement, especially between countries. 

2)  An offer to substitute a different obligation for one that was previously owed, plus the acceptance of that offer.  Either of the parties involved can propose an accord.  If the newly substituted obligation is actually performed, the performance is called a satisfaction.  See Accord and satisfaction.

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit.  The settlement of an account receivable begins by sending an invoice to the customer.  A company enters accounts receivable under "current assets" on its balance sheet. 

Illustrative case law

See, e.g. United States v. Berg, 250 F.3d 139 (2d Cir. 2001).

BIOCOB


In the law of secured transactions, refers to a buyer in the ordinary course of business.  In order to qualify as this the buyer must purchase particular goods in good faith, without knowledge that the sale violates another individual's rights in the goods, and the buyer must buy the goods in the ordinary course of business from someone who sells that particular type of goods.
 

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