Factoring Agreement Document With Recourse In Massachusetts

• Category: Contracts - Factoring
• State: Multi-State
• Control #: US-00037DR
• Format: Word; Rich Text

Description

The Factoring Agreement Document with Recourse in Massachusetts is a legally binding contract that outlines the terms under which a factor purchases a seller's accounts receivable. The document specifies that the seller assigns all future accounts receivable to the factor, allowing the factor to collect payments directly from the sellers' customers. Key features include provisions for credit approval, the handling of returned merchandise, and the allocation of credit risks, which are particularly relevant when the factor decides to assume credit risks associated with accounts. Attorneys, partners, owners, associates, paralegals, and legal assistants will find this form instrumental for securing financing against receivables, managing commercial credit, and outlining responsibilities of both parties involved. It requires careful completion, including the seller's business details, account assignments, and negotiated fees, ensuring transparency and protection of both parties' interests in the relationship. The agreement also addresses legal aspects such as breach of warranty, arbitration, and termination conditions, which are crucial for legal compliance and risk management.