82,891
edits
Finance contract: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 7: | Line 7: | ||
Other good examples are [[swap]]s, futures, [[securities]], [[Securities financing transaction|securities financing arrangements]], [[option]]s, trade financing arrangements, securitisations and commodity supply contracts. Extra points for excitement if they [[cross-border|cross borders]] or constitute, as they often will, regulated activity of some kind. | Other good examples are [[swap]]s, futures, [[securities]], [[Securities financing transaction|securities financing arrangements]], [[option]]s, trade financing arrangements, securitisations and commodity supply contracts. Extra points for excitement if they [[cross-border|cross borders]] or constitute, as they often will, regulated activity of some kind. | ||
Finance contracts create special, ''large'', monetary risks. These are different in quality and nature than risks presented by other contracts. You may — in fact, almost certainly will — feel a deep resentment and disappointment at those you engage to carry out your loft extension, as the fourteenth month passes of a project you were assured would take six weeks, but the answer is just to not pay. | Finance contracts create special, ''large'', monetary risks. These are different in quality and nature than risks presented by other contracts. You may — in fact, almost certainly will — feel a deep resentment and disappointment at those you engage to carry out your loft extension, as the fourteenth month passes of a project you were assured would take six weeks, but the answer is just to not pay foir things they haven’t done, or have done half-heartedly, or have bished up. these things may well exasperate you, mightily, but they aren’t ''that'' likely to send you to the brink of ruin, and — trust me — ''however'' dismal your contractors may be, suing them will be worse, and “self-help” isn’t really an option. If it was, no-one would hire builders in the first place. Wouldn’t that be a beautiful world. | ||
But | But enough about the JC’s forlorn endeavours with home improvement. When your business is handing over large quantities of liquid assets to people you don’t know well, in the expectation of they will return them later, things can quickly, and effortlessly, ''badly'' go wrong. Therefore, finance contracts have lots and lots of [[boilerplate]] aimed to keep those who are owed money-like things safe. | ||
[[Finance boilerplate]] is thus an unfortunate, miserable fact of life for [[banking legal eagle|banking legal eagles]], but we address our labours with fortitude, good humour, and do our level best to see the funny side of it, seeing as we have no choice. Levity is not easy, but possible — it propels this wiki, after all. | [[Finance boilerplate]] is thus an unfortunate, miserable fact of life for [[banking legal eagle|banking legal eagles]], but we address our labours with fortitude, good humour, and do our level best to see the funny side of it, seeing as we have no choice. Levity is not easy, but possible — it propels this wiki, after all. | ||
| Line 21: | Line 21: | ||
And so we find ''non'' financing contracts — things like service agreements, employment contracts, licensing arrangements — which should be a model of [[James Ellroy|Ellroy]]esque brevity, are shot through with this ghastly banking dreck. | And so we find ''non'' financing contracts — things like service agreements, employment contracts, licensing arrangements — which should be a model of [[James Ellroy|Ellroy]]esque brevity, are shot through with this ghastly banking dreck. | ||
===Finance specific boilerplate=== | ===Finance-specific boilerplate=== | ||
Here are some common standard clauses which, it is submitted, do not belong outside a finance contract. This is an | Here are some common standard clauses which, it is submitted, do not belong outside a finance contract. This is an | ||
organic list that will grow as I get round to expressing my angst and frustration at crappy legal eagles who keep insisting on this sort of thing: | organic list that will grow as I get round to expressing my angst and frustration at crappy legal eagles who keep insisting on this sort of thing: | ||
{| class="wikitable sortable" | {| class="wikitable sortable" | ||
|+ Why you don’t need finance contract boilerplate in other types of contract | | + Why you don’t need finance contract boilerplate in other types of contract | ||
{{aligntop}} | {{aligntop}} | ||
! Clause !! What is does !! Why you don’t need it | ! Clause !! What is does !! Why you don’t need it | ||