Accounts Receivable Contract Formula In California

• Category: Loans and Lending - Accounts Receivables
• State: Multi-State
• Control #: US-00402
• Format: Word; Rich Text

Description

The Contract for the Sale of Accounts Receivable in California serves as a formal agreement between a seller and a buyer for the transfer of rights to outstanding accounts. This contract stipulates that the seller is selling all rights, titles, and interests in specified accounts, along with any due payments. Key features include seller representations about the accounts, such as confirming that all services were delivered, and outlining any contractual contingencies. Users should pay close attention to the attached Exhibit "A," which lists detailed account balances and debtor information. The contract allows for inspection and due diligence by the buyer within a specified period, ensuring that they can assess the accounts before finalizing the sale. The form addresses whether the sale is with or without recourse, which impacts the seller's liability in case of defaults. This contract is particularly useful for attorneys, partners, and business owners who engage in the buying and selling of receivables. Paralegals and legal assistants will find this template beneficial for preparing and managing such transactions in compliance with California law.