Security Contract
/ˈsɪkjʊrɪti ˈkɒntrækt/
Definitions
- (n.) A legal agreement in which one party provides collateral to secure an obligation, ensuring performance or repayment under the contract terms.
The lender required a security contract to guarantee the borrower's repayment obligations.
Forms
- security contract
- security contracts
Related terms
See also
Commentary
Security contracts are crucial in secured transactions, where the contract specifically creates or provides for a security interest in collateral. Drafting should clearly specify the collateral and obligations secured to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.