Chapter VII

Case Studies and Best Practices for Your Industry

General Considerations for Written Agreements with Customers

Most businesses that work with consumers will have a written agreement for anything other than an outright cash sale on the spot. Even then, you’ll have a receipt. If you are going to have any sort of relationship with a consumer beyond a point-of-sale transaction, make sure there are documents to memorialize the transaction. A handshake is worthless in bankruptcy court. Get everything in writing.

Make sure that your loan agreements contain language that void the agreement due to insolvency giving the creditor the right to seize the collateral pursuant to state law. Make sure that your documents are signed and witnessed ...

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