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Terms Used In Louisiana Revised Statutes 10:1-204

  • Contract: A legal written agreement that becomes binding when signed.
  • person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10

Except as otherwise provided in Chapters 3, 4, and 5, a person gives value for rights if the person acquires them:

(1)  in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;

(2)  as security for, or in total or partial satisfaction of, a preexisting claim;

(3)  by accepting delivery under a preexisting contract for purchase; or

(4)  in return for any consideration sufficient to support a simple contract.

Added by Acts 1974, No. 92, §1, eff. Jan. 1, 1975 ; Acts 2006, No. 533, §1.