Chapter Thirteen

The ability to operate a business or household depends on the flow of money available. Businesses rely on the availability of cash flow to operate and continue daily functions. Unforeseen circumstances arise regularly in a household that may require the need for quick cash. Our financial system gives businesses and families options that can satisfy these needs.
Negotiable instruments give businesses and people the ability to pay others without using cash. Some negotiable instruments include drafts, checks, notes, and certificates of deposit. Sometimes businesses and individuals need to use credit to have funds available for these needs. Money given as credit generally requires a security. The purchase is usually enough collateral to satisfy this need. This is why lending institutions want a down payment on a purchase. If the ability to repay a debt is not there, the lending institution can go after the collateral (repossession) to receive there loan moey back. Another way to guarantee a return on the loan is a co-signer or surety. This is a third party that signs a loan to help the borrower receive a loan. If the original borrower cannot repay the loan, the surety will need to come up with the funds.
The last resort in a lending institution receiving money that the debtor is unable to repay is bankruptcy. Chapter 7, Chapter 11, and Chapter 13 all have wording that can be utilized by the debtor depending on the situation. The bankruptcy court decides the process and options that the debtor will take in the bankruptcy proceedings. While there are many bankruptcy filings each year, this is used when no other options exist. Bankruptcy may mean the refinance of or liquidation of debts. This need is important because of the unknown. Some debtors are put into bankruptcy because of irresponsibility, however, most are put there because of unforeseen circumstances. Businesses may feel a downturn in sales because of the economy, and households may experience loss of income or medical problems that arise to make it impossible for them to repay their loans. Living or operating within ones means is financial responsibility and could help prevent these proceedings.       

Chapter 10 # two

When a breach of contract occurs, reasonable efforts must be made to mitigate the losses. If money damages (legal remedies) are inadequate to compensate for the injury, specific performance or an injunction (equitable remedies) are available to the injured party. Equitable remedies are more flexible as they do not have to follow precedent. Specific performance is a court order requiring who created the wrong to fulfill their obligations in the contract. This may mean simply finishing a job or service. An injunction is a court order that requires a party to perform or refrain from performing certain acts. A preliminary injunction or a temporary injunction may be used while the court decides the fate of the parties involved. This may be used to aid in a no compete clause. Equitable remedies are used when monetary damages are to difficult to figure. The compensation used to fix a breach of contract is up to the discretion of the court.

Chapter Ten

Chapter ten discusses the legal aspects and barriers in contract law. A contract centers on a promise and consideration between an offerer and an offeree. There are many ways that a contract is accepted and carried out. All promises (contracts) must be legal when written and while being carried out. If the law changes during the lifetime of the contract, The contract may be no longer legal.
The one part that stands out to me is the unconscionable contract. When my dad bought his last farm, the sellers lawyer wrote in the contract that the seller would maintain all commodities from the farm for ten years after the sale. My dads lawyer found this before the contract was signed, so it all worked out, but had he not, this may qualify as a unconscionable contract.
Essentially everything written in a contract must be material. That is it must be important information to the details of the contract. All parts of the contract must be legal and written by two parties with a stable state of mind. Rescission, novation, and accord and satisfaction are the ways to discharge a contract. Damages may be returned by remedies or restitution.   

Chapter Nine

Intellectual property or intangible property is often protected by trademarks, copyrights, patents, or trade secrets. The Lanham Act protects this property from infringement, dilution, cybersquatting, and counterfeiting. Trade dress is the look and feel of a product or service establishment. The use of the law is important in deciding which protection to use. A patent only protects a company's product for twenty years. This is why Coca Cola did not use this protection. Coke was able to protect its recipe for over one hundred years. Receiving a patent is also a slow process. For this reason, patents are not appropriate for products with quick technological change. Patents are more useful for long term products like medicines. Companies are also protected by trade secrets. Trade secrets are designed to protect companies from ex employees from giving sensitive company information to a future employer and also from trying to steel customers from past employers. Companies must do all they can to protect their intellectual property. This should be put at the top of their agenda as to making a profit.    

chapter eight

Chapter eight discusses ownership and the property rights of owners. Quitclaim deed, warranty deed, and special warranty deed are the way that ownership interests are transferred to another. This is done with the transfer of a title. These ownership rights may be known as an estate. Fee simple means the right to exclusive possession of a piece of property. Tenancy, life estate, trust, and business trust are ways to transfer these pieces of property. Servitudes and covenants are limitations on the use of the land being transferred. If a piece of land being transferred is land locked, there may be an easement granted to the new landowner so the new landowner can enter the piece of property from a frontage road. The government has the right to zone land for certain use. The government also has the right to acquire land--eminent domain--for special use. The government is required to pay a fair price for this land acquisition. These rights are listed under the Fifth Amendment.