Economic function: It is to avoid a continuous and reciprocal flow of monetary funds between people who are in permanent business relation. The transfer of money is replaced by a note in the account merchant pending another movement, otherwise, cancel or reduce the amount of the previous one.
Difference with related situations: It is convenient to distinguish the commercial current account merchant contract from the simple situation of current account and bank current account.
The simple situation of current account merchant is not a contractual figure, but a pure business relation that the involved ones observe for exclusive reasons of operability and fluidity in its operations, but the derived credits are exigible with the immediacy that has been agreed.
The so-called bank current account merchant if, on the other hand, it is a contractual figure, the essential difference with the ordinary or commercial current account is that it is not foreseen that the contracting parties may be, according to the movements of payments and remittances, recipients of creditors or debtors.
Effects of the contract of Account Merchant
The essential element from the legal point of view is to determine what effect it produces on the credit that happens to be integrated into the account merchant and on the legal relationship that generates it the fact that in execution of the contractual forecasts is reflected in the one. As regards the legal business from which the remittance originates, it must be said that it is not affected by the existence of the current account, nor by the fact that the credit derived therefrom. With respect to the credit derived from the remittance and the consequent obligation to attend it, subsist in any of the contractors can only represent an advance of the moment of settlement of the account, with the consequent demandability of the balance if it is in favor of the contest, or its Inclusion in the passive mass if, at the time of declaration of insolvency, it was in favor of the other party.
In reciprocal credit clearing agreements, the enforceability is specified in the balance at the time they are to be canceled.
Settlement of account and termination of contract of an Account Merchant
It is inherent in the current account merchant to be a contract of continuous tract, called to be prolonged in time. Notwithstanding, it is normal for contractors to periodically review the accounts and adjust or reconcile the corresponding balance. Once the agreement on the balance has been produced, it may be canceled through a single payment, or it may be included in the first installment of a new period, either for the total amount or for the part that has remained unpaid.
The definitive termination of the contract is usually not preceded by an express agreement and purpose. Normally it coincides with the termination of the commercial relations that gave rise to its birth or with the disappearance of any of its components, cessation of activity, or declaration of insolvency.
Concept and characters of an Account Merchant
The current account merchant is a bilateral contract whereby two persons who are in a permanent business relationship from which alternative credits arise, establish their separate non-liability, replaced by a compensation system, with periodic settlements and consequent settlement of balance, creditor For one and debtor for another.
Characteristics of an Account Merchant:
• It is an accessory or auxiliary contract in the sense that it is inserted in the framework of a contractual relationship of greater importance, of a continuous process and with independent economic motivation, whose execution facilitates and facilitates.
• It is an onerous contract because although it does not derive from the obligation to provide one party in favor of another, if it exists for both to waive the immediate enforceability of the payment of the services they perform, pending their possible total or partial compensation , With the credits that in favor of the other party can be generated until the moment in which the liquidation is made.
• It is a consensual contract, and usually product of the habitual practice of those who have been linked by permanent business relationship.