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Murthy   23 April 2020

Debt /Security

A retailer (x country national)having business in y country got goods delivered from a farmer of that y country but did not make payment for goods.The farmer did not take any acknowledgement or receipts .But retailer has promised to pay him and is ready to sign any document and secure debt.He also has property which he is ready to mortgage in x country

my queries

1.what kind of an agreement or understanding shd be made between the retailer and farmer to secure debt ?
2.what are the permissions to be sought
3.what is the jurisdiction whether the document if made can be enforceable in x and y countries
4.legalparameters ..guarantee...mortgage of property ... enforceability


Learning

 3 Replies

P. Venu (Advocate)     23 April 2020

Each country has its rules, systems and institutions. It is impossible offer any meaningful suggestion.

G.L.N. Prasad (Retired employee.)     24 April 2020

Contacting a local advocate or opening letter of credit is the only solution.

G.L.N. Prasad (Retired employee.)     24 April 2020

The purchaser can accept bill of exchange drawn by the seller and guaranteed by the seller's bank.  The seller can get immediate cash with reasonable discount and on maturity, his banker can get payment from the purchaser's bank. (Hundi purchase)


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