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Secured & Unsecured Debt and Contract Obligations

Secured & Unsecured Debt and Contract Obligations
Background:
The law firm is in the process of purchasing a number of new company desktop computers, printers, notebook computers and servers. Your firm is planning to borrow money from a bank to complete the transaction. The IT manager who is in charge of the transaction does not understand what type of contract the company is entering into with the bank, or what most of the legal terminology means. Your supervising partner wants you to prepare an outline to assist the IT Manager.

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Task:
Specifically, your supervising partner wants you to explain secured and unsecured debt and what occurs if the firm defaults on the agreements to purchase the technology equipment.

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