The embezzlement clauses are used in favour of the party that is threatened with default. They give the creditor legal access to a debtor`s assets to the lender`s financial institution or to another creditor in which the debtor has accounts. Before signing a contract with a clearing clause, borrowers should be aware that this may result in the loss of assets that they could have retained through other means of debt settlement, such as bankruptcy, for example.B. The Bibby case concerned a factoring agreement that provided for the sale of all current and future debts. The assignee, who had delivered goods to the debtor for years, was in the administration and the postman (Bibby) sued the debtor on the unpaid invoices. In particular, the debtor sought compensation for the rebates to which he was entitled in the context of his contracts with the assignee, which, in his view, constituted fair compensation and could therefore be relied upon to determine whether they had been made prior to the termination (according to the third principle outlined above). In addition, as has already been mentioned, the current category of debt is very broad, including the debt payable, but also the unearned payment fees arising from the current obligations. Distinguishing between these and the debts of future contracts seems perverse. There is a restriction: the notice must be of an “attribution” (albeit according to the Holroyd/Marshall principle) and not of a general agreement of transfer or variable royalty. There is the power that the debtor can no longer account for independent compensation against the tax before the exclusion (and announcement) of the variable levy (Biggerstaff/Rowatt`s Wharf Ltd [1896] 2 Ch 93) The five types of compensation are extremely important for reasons of efficiency and risk reduction. Contractual transfers recognized as an incident of party autonomy, while the banker`s right to combine is considered a fundamental implicit notion. This is an essential aspect for cross-cutting messages, especially when there are overlapping obligations.
The common characteristics of the hazard are that they are limited to situations in which the requirement and cross-demand can be re-raised for money or money and requires reciprocity. An authorization clause may also be part of a supplier agreement between the supplier, such as a manufacturer. B, and a buyer, z.B a retailer. This type of clause can be used in place of a bank letter of credit and gives the provider access to deposit accounts or other assets held by the buyer`s financial institution if the buyer does not pay. A late clause allows the seller to obtain a payment equal to the amount owed to him under the supplier contract. The Court of Appeal upheld the judge`s decision that the test of fair implementation was completed.