How would you define "Financial Status" in a legal contract? (2024)

FAQs

What is the description of financial status? ›

Financial Status means the condition including finance, business, assets, properties, and operations of a person. Seen in 1 SEC filing. Financial Status means the measure of profitability, loss, revenue, income, earnings, debt, EBITDA, or cash flow.

Financial Condition means the financial resources needed to perform the contract. The criteria used to evaluate a bidder's financial condition shall include, at a minimum, capacity to obtain all required payment bonds, performance bonds, and liability insurance.

Financial Status means profits, losses, revenue, income, earnings, indebtedness, EBITDA, corporate valuation, available cash, or cash flow. Sample 1. Financial Status .

Typical signs of strong financial health include a steady flow of income, rare changes in expenses, strong returns on investments, and a cash balance that is growing.

Consideration is a legal term used to describe the benefit each party to a contract receives. This is often payment in exchange for goods or services. Consideration doesn't actually have to be money though – it can be anything of value that you get as part of a contract, like equipment or work.

Liabilities, such as mortgage and credit card debt, are also taken into consideration. By subtracting the total liability value from your total asset value, the bank determines your net worth or equity. This exact process is also used by investors when determining the financial position of a listed company.

A contract is an agreement between parties, creating mutual obligations that are enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

Reported assets, liabilities, equity, income and expenses are directly related to an organization's financial position.

What is a word for financial status? ›

net worth way of life worldly goods.

Provide accurate information: When writing about your financial situation, it is essential to provide accurate and honest information. This includes details about your family's income, any major expenses or debts, and any other sources of funding that you have received or applied for.

Financial distress happens when revenues or income no longer meet or pay for the financial obligations of an individual or organization. Financial distress is often a harbinger of bankruptcy and can cause lasting damage to one's creditworthiness.

Through the income statement, you can witness the inflow of new assets into a business and measure the outflows incurred to produce revenue. Profitability is measured by revenues (what a company is paid for the goods or services it provides) minus expenses (all the costs incurred to run the company) and taxes paid.