To provide resources to individuals and other legal entities in order to aid them in establishing and maintaining healthy governmental relationships. To be self-governing we believe that the individual must first accept his/her role as a governing member of society.
To raise the legal awareness of individuals so that they may better serve their community while protecting and enforcing their private rights.
Sustainable Financial Practices
To aid individuals, as well as other legal entities, in realizing the full value of their assets and how to sustainably utilize those assets to better manage their financial affairs.
The spirit of the Merchant resides within all. It is the part of us which understands that life exists with a constant state of exchange. We exchange many different forms of energy--some tangible and some intangible--with our environment, with other organisms, and with ourselves. And with this exchange, the art of trade arises. See More...
Why Restatement (Second) of Contracts is a Vital Resource for Independent Contractors
Many of us are contending to manifest our dreams through business, commerce, and collaboration with other creative minds, but to do so successfully we must establish valuable relationships.
Have you ever entered into a relationship with an individual or business and felt that a verbal agreement would suffice, only to find out some time later that said individual or business had a different interpretation or memory of the agreement than you? The result of this can cause a loss of valuable time and money, resulting in frustration and the all-too-often finger pointing at the other party for failure to perform their duties and obligations under the agreement. See More...
When Taking an Instrument Discharges an Underlying Obligation
According to Modern Commercial Paper 147 (1994), "Taking an instrument discharges the underlying debt when the parties to the deal agree to this effect. 3-310(b) ("Unless otherwise agreed * * *"). Such an agreement, which is very rare, is effective to discharge the underlying obligation regardless of the nature or kind of instrument that is taken, even if it is an ordinary note or check of the person who is the issuer of the instrument and the underlying obligor."
While the idea of discharging debts by using negotiable instruments is only known by a select few, it appears to be a concept that more and more people are investigating. Investigators should heed caution that discharging an underlying obligation of an issuer is not the same as discharging that issuer's obligation on the new instrument tendered. For example, if a debtor had a loan and wished to discharge that loan by payment with a negotiable instrument, that negotiable instrument, if accepted by the creditor, could discharge the original loan (the underlying obligation). The obligation of the debtor imposed by the negotiable instrument, however, would still be in effect. If, by the terms of the tendered payment, acceptance (taking) said tender would discharge both the underlying obligation and the obligation imposed by the instrument, that would be impractical for the creditor, because there is no real consideration being offered. If, by accepting an instrument, that same instrument was immediately discharged, it would have no worth to the creditor.
Why would a creditor take an instrument in exchange for discharging an underlying obligation owed to the same? It could be for a multitude of reasons: further security, more compensation earned by interest, and more sustainable financing are some to name.
A concept that both parties may consider questioning is, "how can a negotiable instrument be used to create the income necessary to pay off the debt imposed by the same." The thought is a bit gnostic. For the debtor, the debt is a liability, and for most, that presents a problem. But, within that problem lies the solution. There are perhaps ways that a negotiable instrument may be utilized to assist the debtor in attaining the income necessary to pay off the debt. It could be a collective effort between the creditor and debtor and could allow the creditor to earn far more profit than the interest rate on the instrument would impose.
How is this done? It starts with the issuer's reservation of a security interest in the instrument, and a right to a share of the proceeds attained from the creditor's investment of that instrument. Watch our latest webinar, "Gnostic Methods of Debt Settlement," and attain Merchant Contracting Services to learn more.
Acceptance Financing Simulation Deck