Re: What type of contract?

Posted by Linda on December 20, 2001 at 14:40:11:

In Reply to: What type of contract? posted by rick on December 19, 2001 at 22:18:16:

Generally, but not always, open accounts are like say, a farmer who buys his supplies at the local feed store, and they keep an account for him, he settles up periodically. Some states consider credit cards open accounts, but many consider them written accounts.

Written accounts are usually thing like car loans or furniture loans, where you sign an installment contract, and make a set payment every month or week or whatever the contract specifies. Many states consider credit cards written contracts (contrary to popular opinion).

Promissory notes are one-time loans - car dealers use p-notes for your down payment sometimes, if you don't have quite enough, but will have it in 2 weeks. You pay part and sign a p-not for part, and they can still get the deal done, because the p-note is treated as down payment. There are many uses for these. Loans between individuals, 90 day notes, etc.

I hope this helps with a general understanding, but before you stake anything on my comments, you must also check the specific laws in your state, because there are ins-and-outs to everything. How else would the lawyers make a living, LOL?

Linda

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