Liquidated Legal Meaning
“Liquidated”. Merriam-Webster.com Legal Dictionary, Merriam-Webster, www.merriam-webster.com/legal/liquidated. Retrieved 11 October 2022. The management of the financial affairs of a company or individual through the sale of all assets and the distribution of the proceeds to creditors, heirs or other parties with a legal claim. Some types of businesses, such as a bank, must post a bond to ensure that assets are properly distributed to creditors. An insolvency practitioner may also be appointed to oversee distribution. The trustee may need to file a final declaration with the bankruptcy court detailing what has been liquidated, what assets remain, and what the liquidation costs are in order to obtain the final composition order. Liquidation law deals with the process of selling or dissolving a business. The term liquidation refers to the process of terminating the existence of a company. The process involves selling the company`s assets or converting them into funds that are distributed to shareholders, company members, and external creditors to whom the money is owed after the corporation is liquidated. In other words, liquidation occurs when a company converts capital assets into cash.
The liquidation of a corporation is not the same as its dissolution (the end of its existence as a legal person). Depending on the law, the liquidation of the dissolution may take precedence or subsequently. Nglish: Translation of liquidated for Spanish-speaking companies do not need to be insolvent to be liquidated; Liquidation may be voluntary or involuntary. An owner may decide to close their business. In other cases, a business owner may be required to repay a foreclosure loan. If the company`s assets are insufficient to cover its debts, the company must be liquidated by a Chapter 7 bankruptcy. LIQUIDATED. What is made clear, safe and manifest; as liquidated damages, established damages, lump sum debt, established debt, as an amount. A debt is liquidated when he is certain of what is due and its amount, certum est an et quantum debeatur; For although it may seem that something is due, if it does not also appear how much is due, the debt is not liquidated.
An outstanding claim is a claim that one of the contracting parties cannot secure alone. 5 R. M. 11; 1 n. p. 130; 6 N p. 715; 6 N. S. 10, 13 L. R. 275; 7 R. L.
134, 599. Such a claim may not be set-off. 2 Dall. 237; S. C. 1 Yeates` R. 571; 10 Serg. & Rawle, 14; see Poth. If. No.
628; Dig. 50, 17, 24; Nos. 42, 1, 64; Id. 1, 45, 112; Nos. 46, 5 and 11; Code, 7, 47. DOM. Laws Civ. l. 4, t. 2, s.
2, n. 2; Arg. Inst. 1. 4, c. 7; 7 Toull. No. 369; 6 Duv. Dr. Civ. Fr. n.
304. Thesaurus: All synonyms and antonyms of liquidated Liquidation in finance and economics is the process of ceasing a business and distributing its assets to applicants. This is an event that usually occurs when a company is insolvent, which means that it cannot pay its obligations when they fall due. When the company`s operations end, the remaining assets are used to pay creditors and shareholders based on the priority of their claims. General partners are subject to liquidation. A liquidated claim is a claim for a certain amount of money agreed by the debtor and the creditor`s claim by law or on the basis of a legally binding agreement on a fixed amount of money. This is usually for less than actual guilt. DAMAGES, LUMP SUM, CONTRACTS.
If the contracting parties agree to pay a certain amount as satisfaction determined and agreed by them for the non-performance of certain things specifically specified in the contract, the amount so determined is called liquidated damages. (S. A.) It differs from a penalty because the latter is a forfeiture from which the defaulting part can be discharged. An agreement on liquidated damages can only be concluded if there is an order for the enforcement of certain actions the non-observance of which would mean prejudice to one of the parties; or to protect against actions that, if done, would also be harmful. In such cases, an estimate of the damage may be made by a jury or by prior agreement between the parties, who may foresee and determine the consequences of a breach of contract accordingly. 1 H. Bl. 232; and see 2 Bos. & pul. 335, 350-355; 2 Brother C. C.
431 ; 4 Burr, 2225; 2 R. T. 32. Civil law appears to be consistent with these principles. Inst. 3, 16, 7; Toull. 3, No. 809; Civil Code of Louis. art.
1928, No. 5; Civil Code, 1152, 1153. 2. It should be noted that, depending on the intention of the parties, the amount set is considered to be liquidated damages or a contractual penalty, and that the subsequent use of the words “penalty” &c “forfeiture” or “liquidated damages” is not at all considered determinative in determining whether the document as a whole has a different intent. 2 History, gl. sec. 1318; 6 B. & C. 224; 6 Bing.
141; 6 Iredell, p. 186; 3 Shepl. 273; 2 Ala. 425; 8 Misso. 467. 3. Rules have been adopted to determine whether such an amount is to be considered a penalty or a lump sum compensation, which is listed here, on the one hand taking into account the cases in which it has been considered a sanction and, on the other hand, in which it has been considered as liquidated damages. 4.-1. It was treated as a punishment, 1. if the Contracting Parties have expressly declared the amount provided for as confiscation or penalty and no other intention can be derived from the document. 2 B.&P, 340, 350, 630; 1 McMullan, 106; 2 Ala.
425; 5 Metc. 61; 1 H. Bl. 227; 1 campb. 78; 7 wheat. 14; 1 selection. 451; 4 Selection. 179; 3 John.
297. 2d. If it is doubtful whether it is a penalty or not, and a specific debt or damages lower than the penalty will be due on the front of the instrument. 3 C. and p. 240; 6 Humph. 186.3d. Where the agreement has been clearly concluded with a view to achieving another objective for which the amount declared is entirely incidental. 11 Fair 76; 15 Fair 488; 1 Br. C. C.
418. 4. If the agreement contains several facts of different importance and yet the said amount is payable for the breach of only one, even the smallest. 6 Bing. 141; 5 Bing. No. 390; 7. Scott, 364; empty sed, 7 John. 72; 15 John.
200. 5. If the contract is not locked and the damage can be safely known and estimated. 2 B. et al. 704; 6 B. & C. 216; 1 M.
& Malk. 41; 4 Dall. 150; 5 Cowen, page 144 5.-2. The agreed sum shall be considered as liquidated damages, 1. If the damage is uncertain and cannot be determined by a satisfactory and well-known rule.