common law, contracts. The ability to borrow, on the opinion conceived by the lender that he will be repaid. This definition includes the effect and the immediate cause of credit. The debt due in consequence of such a contract is also called a credit; as, administrator of an the goods, chattels, effects and credits 2. The time extended for the payment of goods sold, is also called a credit; as, the goods were sold at six months credit. 3. In commercial law, credit is understood as opposed to debit; credit is what is due to a merchant, debit, what is due by him 4. According to M. Duvergier, credit also signifies that influence acquired by intrigue connected with certain social positions. 20 Toull. n. 19. This last species of credit is not, of such value as to be the object of commerce.
Law Dictionary – Alternative Legal Definition
(1) 1. The ability of a business man to borrow money, or obtain goods on time, in consequence of the favorable opinion held by the community, or by the particular lender, as to his solvency and reliability. People v. Wasservogle, 77 Cal. 173, 19, Pac. 270; Dry Dock Bank v. Trust Co., 3 N. Y. 356. 2. Time allowed to the buyer of goods by the seller, in which to make payment for them. 3. The correlative of a debt; that is, a debt considered from the creditor’s standpoint, or that which is Incoming or due to one. 4. That which is due to a merchant, as distinguished from debit, that which is due by him. 5. That influence connected with certain social positions. 20 Toullier, n. 19. The credit of an individual is the trust reposed in him by those who deal with him that he is of anility to meet his engagements; and he is trusted because through the tribunals of the country he may be made to pay. The credit of a government is founded on a belief of its ability to comnry with its engagements, and a confidence in its honor, that it will do that voluntarily which it cannot be compelled to do. Owen v. Branch Bank, 3 Ala. 258. Bill of credit. See BILL. Letter of credit. An open or sealed letter, from a merchant in one place, directed to another, in another place or country, requiring him. if a person therein named, or the bearer of the letter, shall have occasion to buy commodities, or to want money to any particular or unlimited amount, either to procure the same or to pass his promise, bill, or bond for it, the writer of the letter undertaking to provide him the money for the goods, or to tepay him by exchange, or to give him such satisfaction as he shall require, either for himself, or the bearer of the letter. 3 Chit. Com. Law, 336. A letter of credit is a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. Civ. Code Cal. 2858. Mechanics’ Bank v. New York & N. H. R, Co., 13 N. Y. 630; Pollock v. Helm, 54 Miss. 5. 28 Am. Rep. 342; Lafargue v. Harrison, 70 Cal. 380,9 Pac. 261, 59 Am. Ren. 416. General and special. A general letter of credit is one addressed to any and all persons, without naming any one in particular, while a special letter of credit is addressed to a particular individual, firm, or corporation bv name. Birckhead v. Brown. 5 Hill (N. Y.) 642; Civ. Code Mont. 1895.