Creditors' Rights 16
Q: What are some things I
should look for when reviewing
my sales and credit contracts?
A: We recommend that you
make sure that your sales and
credit contracts provide for
your customers to identify their
correct legal composition (i.e., partnership, sole proprietorship,
corporation, LLC, LLP, L.P.).
Your sales and credit contracts should require your customers
to designate which of their employees are authorized
to make purchases from you.
Also, your sales and credit contracts should provide for interest /
finance charges on past due balances and for the customers’
obligation to pay collection costs and attorneys fees
if their accounts are referred to an attorney for collection.
An important thing to remember is Ben Franklin’s aphorism:
an ounce of prevention is worth a pound of cure.
