What Is A Ucc Agreement

Fortunately, there are third parties that can offer you these services, so you can stop worrying and focus your time on what you do best: running your business and helping your customers. Now, imagine your boss show up at your office during your first week and ask you to sign a new contract, which is essentially a non-compete clause. This means that your employer now wants you to sign a new contract in which you agree not to compete with the company if you decide to terminate your employment contract. The employer wants you to make that promise, but they don`t offer anything more in return. For the purposes of this example, assume that you sign the new agreement. Is this new agreement valid and binding for you? Probably not. What for? Because the company has not suffered any new disadvantages or legal obligations as a result of the contract. You agreed not to compete with the company when you leave, but the company itself did not give you anything in exchange for your promise. In order to make this contract binding on you, your employer should have provided something in return. For example, he could have asked you to sign the non-compete agreement for an extra salary of a thousand dollars a year. Then, the contract would have a quid effect and would be much more likely to be deemed valid. Better yet, the company should have negotiated the non-compete agreement with your original contract before you take on your new position. For a contract to be valid, the subject matter of the contract must serve a legal purpose.

When an illicit drug distributor hires a pilot to transport his illegal cargo to a specific location for a fee, it is a contract for an illegal item. If the drug trafficker does not keep his promise of payment or if the pilot does not respect his consent to the carriage of the cargo, none of the aggrieved parties will remedy the situation in our courts, even if the elements of the contract are all present and fully formed. One of the basic concepts of Article 9 is how a precautionary interest arises (called attachment); how to disclose to the public a security right that makes the security right enforceable against other persons who may claim a security right (called perfection); whether there are several claims on the same securities in order to determine which interest takes precedence over the others (called priority); and remedies available to a secured party if the debtor fails to pay or perform the secured obligation. Why should you submit a UCC-1 if you meet the criteria listed in the previous answer? In a word, protection. We don`t live in a perfect world…