Definition: Overdraft refers to open-ended financial assistance which the bank offers to the current account holders, in which the individuals and entities are allowed to withdraw funds from their accounts more than the amount standing in the credit of his/her current account or when the account has zero balance or even when the account shows debit (negative) balance. Hence, … [Read more...] about Overdraft
Subsidiary Book
Definition: Subsidiary books are special-purpose accounting books that record transactions belonging to the same category in a particular book in a sequential manner. Also, the transactions are recorded in their original form, i.e. as and when the transactions occur, they are entered in the subsidiary book before posting them anywhere that is why they are also known as the book … [Read more...] about Subsidiary Book
Quasi Contract
Definition: Quasi Contract is a retroactive agreement, determined by a judge with an aim of correcting a situation wherein one party obtains something at the cost of another party. It stops one party from getting an unfair advantage from the situation. It takes place when a dispute exists against the payment of goods and services. Thus such arrangements rely on the court's … [Read more...] about Quasi Contract
Contingent Liability
Definition: Contingent Liability refers to an anticipated financial obligation that springs from events that happened in the past and whose existence is validated by the happening or non-happening of the uncertain future event, which is not under the control of the enterprise. Also, it can be a present financial obligation, whose payment is not likely or whose amount cannot … [Read more...] about Contingent Liability
Contract of Guarantee
Definition: Contract of Guarantee refers to a contractual arrangement in which one party gives a guarantee for another regarding the fulfillment of a promise or repayment of the debt when the latter fails to discharge the liability or perform the undertaking. That is to say, guarantee means to stand for another person and in a contract of guarantee, the surety assures … [Read more...] about Contract of Guarantee
Negotiable Instrument
Definition: Negotiable Instrument implies a financial document used for fund transfer from one person to another. Basically, it is an instrument that bears the signature of the maker, promising payment of a specified sum to the person whose name is written on it, or the assignee, either on-demand or on a future specified date. Further, the negotiable instrument creates a … [Read more...] about Negotiable Instrument
Conciliation
Definition: Conciliation is a process in which the third party persuades the parties in dispute to amicably settle the claims. It is one of the effective and private methods of dispute resolution, in which the conflicting parties take the help of a conciliator voluntarily, who discuss the matter with them, with an aim of settlement of the dispute without going to the … [Read more...] about Conciliation
Misrepresentation
Definition: When a person makes a representation on the belief that the statement is true, amounts to innocent misrepresentation. It is a positive declaration made by one party, while entering into the contract which is not actually true, but the parties hold that it is true, as regards a material fact which can influence the decision of another party to the contract, is a … [Read more...] about Misrepresentation
Commodity Market
Definition: Commodity Market implies the place where products, either produced or grown are being traded between investors. It brings together all the participants to determine the price, at which the commodity can be traded across the market. To determine the price of the commodity in a commodity market auction mechanism is used wherein sellers ask for a certain price, … [Read more...] about Commodity Market
Non-Profit Organization
Definition: Non-Profit Organization, as the name signifies a type of organization that does not operate with the purpose of making a profit, rather, it works for a social cause. NPOs are legally and voluntarily registered entities, run by a group of people with a service motive, so as to promote the general welfare of the public. The money earned in the form of revenues or … [Read more...] about Non-Profit Organization