Understanding Checks: History, Concepts, and Legal Aspects
Check History and Evolution
- Origins: Similar to the bill of exchange in Europe during the Middle Ages.
- England: 17th century, Exchequer Bills – King orders the Treasury.
- France: 1865, first legal distinction between checks and bills of exchange.
- Brazil: 1860, first Brazilian legislation.
- Uniform Law: Geneva Convention in 1931, applied in Brazil since 1966.
- Brazil: 1985, Act 7357 (Check Act) – articles cited without source refer to this law.
General Check Concepts
Concept: An unconditional order of payment
Read MorePurchase Order and Goods Transportation: Key Aspects
Purchase Orders
A purchase order is a document that details a transaction between a buyer and a supplier. It specifies the products, quantities, prices, and agreed-upon delivery date. The purchasing department can send the order via letter, fax, email, phone, or through an agent.
Types of Orders
- Firm Order: When both parties agree on the transaction terms, often based on a pre-negotiated contract. This is also known as a cream order or request.
- Conditional Order: When the buyer sets conditions for the
Understanding Partnerships and Corporations: Key Legal Aspects
Key Legal Aspects of Partnerships and Corporations
Formation and Contributions
1. For there to be a corporation:
It is necessary that all partners make a contribution.
2. Call external companies:
A society with legal personality.
3. The purpose of the partnership agreement:
Are the contributions made by partners.
4. Contributions of the partnership agreement:
May consist in giving, doing, or not doing anything.
Types of Partnerships and Liabilities
5. The contract participation accounts:
It is purely a domestic
Read MoreCommercial Sales Contracts: Key Elements and Terms
The Contract
A contract requires three factors: There is an agreement between two or more parties. The agreement concerns a matter or thing, the obligation of which is determined. The contract generates a legally enforceable obligation between the parties.
Effects of Contracts
The contract requires contractors from the time of perfection. From the time of the agreement, it is due to be fulfilled. Contractors must act in good faith. If not fulfilled in all its terms, it is binding on the contractors
Read MoreLimited Partnerships and Participation Accounts in Business
Limited Partnerships: Concept and Types of Partners
A limited partnership is a type of partnership used for exercising a commercial activity. It is characterized by the coexistence of two types of partners: general partners and limited partners. General partners have unlimited liability for the debts, while limited partners have a limited response. The personal character is more pronounced in the general partners than in the limited partners. The limited partnership is governed by Arts. 145-150 BCC.
Read MoreUnderstanding Exchange Acts: Draft, Acceptance, Endorsement, and Aval
Exchange Acts: Key Concepts and Operations
Draft Issue
- It is the act of creating the security.
- Characters: Drawer, Taker, and Drawee.
- “Drawee” exists only in money orders, such as bills of exchange, checks, and duplicates.
Acceptance
- Concept: The act by which the drawee agrees to comply with the payment order given by the drawer.
- It is an act in existing “orders” like bills of exchange, checks, and duplicates.
- There is no acceptance if the title is due at sight.
- There is the “promise to pay” in a promissory