<<
>>

The Legal Failure

On this plan, two ideas are to be retained. Indeed, since the roman law, the rights of the bankrupt­cies are collective, general and public procedures having for object to eliminate the company or to allow its recovery, what establishes their first as­pect, the being second that at the origin of these procedures, there is an insolvency of a debtor who shows himself by the suspension of payments, because he is in the incapacity to face the im­mediately due liabilities with his available asset.

On the legal plan, the suspension of payments means that a debtor does not settle when due, of the debt become due. A single incident of pay­ment would be enough, from the point of view of the principles, to create the generative fact of the failure. Effectively, companies can be in the impossibility to honor their obligations, because of an insufficient finance, of difficulties of ob­taining of credits or still an unfavorable economic situation, even if this situation is only.

<< | >>
Source: Banking, Finance, and Accounting: Concepts, Methodologies, Tools, and Applications. IGI Global,2014. — 1593 p.. 2014
More financial literature on Economics.Studio

More on the topic The Legal Failure: