Factoring Agreement Filed With Court In Massachusetts
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Description
The Factoring Agreement filed with court in Massachusetts outlines the terms under which a factor purchases accounts receivable from a client, providing necessary funds for the client's business operations. It specifies the assignment of accounts, sales and delivery protocols, and the responsibilities of both parties regarding credit approvals and risks. The agreement emphasizes the factor's right to collect debts under the assigned accounts and stipulates the obligations of the seller regarding credit limits and reporting of disputes. Key features include provisions for commissions, interest rates, and conditions under which the agreement may be terminated or modified. This document is crucial for attorneys, partners, and legal assistants as it provides a structured approach to managing financial transactions between parties, ensuring compliance with legal standards and protecting the interests of involved parties. Paralegals can utilize this form for drafting and processing agreements, while associates and owners can rely on it for understanding their legal commitments and financial risks in the factoring process.
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A factoring relationship involves three parties: (i) a buyer, who is a person or a commercial enterprise to whom the services are supplied on credit, (ii) a seller, who is a commercial enterprise which supplies the services on credit and avails the factoring arrangements, and (iii) a factor, which is a financial ...
