Terms Used In Louisiana Civil Code 3042

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.

A commercial suretyship is one in which:

(1)  The surety is engaged in a surety business;

(2)  The principal obligor or the surety is a business corporation, partnership, or other business entity;

(3)  The principal obligation arises out of a commercial transaction of the principal obligor; or

(4)  The suretyship arises out of a commercial transaction of the surety.

Acts 1987, No. 409, §1, eff. Jan. 1, 1988.