B LAW403 Lecture Notes - Lecture 5: Security Interest, Purchase Order, Unsecured Creditor
Document Summary
3rd party not before courts; truck equipment ltd. (debtor) One party gives another party computers that they will sell and in return the sender will get money. Usually a security agreement is created to guarantee payment of the computers. The sender/vendor however stamped on the purchase order forms: title retained by vendor until payment in full. This is a security agreement. this was done once the bankruptcy had occurred and after the debtor had signed the paper. Atlas/the vendor sends forms to trustee in bankruptcy claiming this is a security interest. If it was signed properly and knowledge of the security agreement was known by all parties then it would be considered a security agreement. Not just anyone can sign particular contracts because of company policies, so this is invalid. If you blindly give another party without a security agreement then someone will lose and there is not much that can be done.