Full question:
I have a notarized contract with a company, 'acquiring corporate credit on behalf of the company'. Legally, does this include lines of credit or just the corporate credit established through credit cards? There is a possible dispute of fulfillment.
- Category: Contracts
- Date:
- State: California
Answer:
The Truth in Lending Act (TILA) is intended to ensure that credit terms are disclosed in a meaningful way so consumers can compare credit terms more readily and knowledgeably. However, credit extended primarily for a business, commercial, or agricultural purpose, or credit extended to other than a natural person (including credit to government agencies or instrumentalities) are excluded from the disclosure requirements of TILA. Corporate credit is credit that is earned and assigned to a corporation or business rather than an individual person.
Agreements for corporate credit are governed by contract law principles. The terms of the contract will define the nature of the credit services involved. The general rules of contract law follow a hierarchy of evidence when determining the terms of a vague or incomplete contract, as follows:
a) The terms stated in the discussions and writings exchanged by the parties that don't contradict the contract terms;
b) Terms implied by the current and past conduct of the parties;
c) Terms implied by industry custom and practice; and
d) Terms implied by applicable law, i.e., damages for breach, liability for negligence, jurisdiction and venue, etc.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
