With regard to the collection part of this form agreement, the Federal Fair Debt Collection Practices Act prohibits harassment or abuse in collecting a debt such as threatening violence, use of obscene or profane language, publishing lists of debtors who refuse to pay debts, or even harassing a debtor by repeatedly calling the debtor on the phone. Also, certain false or misleading representations are forbidden, such as representing that the debt collector is associated with the state or federal government, stating that the debtor will go to jail if he does not pay the debt. This Act also sets out strict rules regarding communicating with the debtor.
The Guam Agreement for Sale and Purchase of Accounts Receivable of Business with Seller Agreeing to Collect the Accounts Receivable is a legal document that outlines the terms and conditions for the transfer of accounts receivable from one party (the Seller) to another party (the Buyer) in the territory of Guam. This agreement is commonly used when a business wants to sell its outstanding invoices or receivables to another party. The agreement typically includes the following key elements: 1. Parties involved: The agreement identifies the Seller (current owner of the accounts receivable) and the Buyer (the party purchasing the accounts receivable). 2. Purchase price and payment terms: The agreement specifies the purchase price for the accounts receivable, which is usually a percentage of the total value. It also outlines the payment terms, such as the timeline for payment or any installment arrangements. 3. Description of accounts receivable: The agreement provides a detailed description of the accounts receivable being transferred, including the names of the debtors and the amount owed. 4. Representations and warranties: Both parties may include representations and warranties to ensure the accuracy and validity of the accounts receivable being transferred. These may include guarantees regarding the collect ability of the debts or any existing disputes or claims. 5. Seller's obligation to collect receivables: A crucial aspect of this agreement is that the Seller agrees to continue collecting the accounts receivable from the debtors on behalf of the Buyer. The agreement specifies the procedures and responsibilities for collecting the debts, such as providing regular reports or updates to the Buyer. 6. Indemnification and liability: The agreement may include provisions for indemnification, where the Seller agrees to reimburse the Buyer for any losses incurred due to uncollectible accounts or any breach of warranties. It is important to note that variations of this agreement may exist, depending on specific circumstances or the preferences of the parties involved. For instance, some agreements may include provisions for recourse or non-recourse, where the Seller retains responsibility for any uncollectible accounts or absolves themselves of such risk. Additionally, the agreement may differ in terms of the scope of accounts receivable being transferred, such as specific types of debts or a broader range of invoices. In conclusion, the Guam Agreement for Sale and Purchase of Accounts Receivable of Business with Seller Agreeing to Collect the Accounts Receivable is a legal document that governs the transfer of accounts receivable from a seller to a buyer, while stipulating the obligations and responsibilities of the parties involved. It provides a framework for maintaining continuity in collecting the accounts receivable and may have different variations tailored to specific circumstances.
