In the Event of a Default

question 98

Multiple Choice

In the event of a default

• A)the forfait does not have recourse against the exporter in the event of a default by the importer.
• B)the forfait does have recourse against the exporter in the event of a default by the importer
• C)the exporter will have to return the goods to the importer.
• D)none of the options

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Definitions:

Legal Title

Legal title is the formal right of ownership of property, recognized and protected by law, which may be distinct from the actual possession or use of the property.

Forfeiture

The loss of property or rights as a penalty for wrongdoing, often related to criminal activity or breaches of contract.

Missed Payment

Failure to make a scheduled payment on a loan or other financial obligation by the due date.

Strict Foreclosure

A legal process by which a secured lender can take possession of the collateral property without the need to sell it, typically when the value of the collateral is less than the debt owed.