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The guaranteed loan has a debt obligation contract. This means if one corporation fails to repay the bank, the guarantor has to pay for it, and this leads to risk spreading across the guarantee network. In a guarantee network, defaults by individual firms can spread and propagate through the network, leading to systemic financial risk ...
Under the law of contracts, a side letter has the same force as the underlying or primary contract. However, the validity of side letters has been denied by some courts in specific circumstances. [1] Side letters are often used in financial or property transactions, or other commercial contracts. They are usually in the form of a letter signed ...
A guaranteed investment contract (GIC) is a contract that guarantees repayment of principal and a fixed or floating interest rate for a predetermined period of time. Guaranteed investment contracts are typically issued by life insurance companies qualified for favorable tax status under the Internal Revenue Code (for example, 401(k) plans).
Guaranteed loans are most often backed by the U.S. government, namely the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA), which back FHA loans and VA loans ...
Wakalah is a non-binding contract for a fixed fee and the agent or the principal may terminate this agency contract at any time "by mutual agreement, unilateral termination, discharging the obligation, destruction of the subject matter and the death or loss of legal capacity of the contracting parties". [168]
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These include profit and loss sharing contracts such as Mudarabah, Musharakah, and Diminishing Musharaka; as well as a variety of asset-backed contracts. The most common contract used in modern Islamic finance is the Murabaha, which was originally a term of fiqh for a sales contract in which the buyer and seller agree on the markup (profit) or ...
A spokesman for the Department for Business and Trade said: “Our Employment Rights Bill will end exploitative zero-hour contracts by giving workers a right to guaranteed hours, new rights to ...
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