Want to know more about bulk sales?

What are bulk sales?

Bulk sales, sometimes called as bulk transfers, is typically involves sale of goods through a business that defines all or partially its entire inventory to a single buyer unless such a sale would be common in the regular course of its business. In a bid to protect the buyers from claims made by financers of the seller, the seller must generally complete an affidavit emcompassing its secured and unsecured creditors.

The affidavit must generally be duly filed inside a government department, such as a court office. Such processes are outlined in the bulk sales act of many jurisdictions. If the buyer does not complete the registration process for bulk sales, creditors of the seller may take a declaration that the sale was not valid against the creditors and the creditors may take charge of the goods or obtain judgment for any further action the buyer received from a subsequent sale.

Bulk sales law came into place to avoid the fraudulent practice of selling the complete inventory of a farm or a store in order to degrade the claims of creditors who would otherwise be able to capture the goods to satisfy a debt. You can look for more information right there on internet which is undoubtedly the best source of information.

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