Management and Organizational Studies 2275A/B Lecture Notes - Lecture 10: Secured Creditor, Security Interest, Bailment

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

Understand the legal significance of credit transactions in business. Understand the methods used by creditors to reduce risk. Understand the difference between secured and unsecured creditors. Understand the ways that lenders and borrowers are protected. Introduction to debt, credit: someone who is giving you money and the consideration back to you, secured credit debt where the creditor has an interest in the debtor"s, ex. Especially in deals where the parties do not know each other well, both parties want to benefit from the deal, but they also want to manage the risk as best they can. This box first introduces students to a letter of credit. What legal risks arise in financing the expansion of a business: in credit financing, the legal risks stem from the risk of the failure of the business or the inability to repay the loan on the agreed terms.