Though most businesses are moving to paperless systems, there are still some valuable documents that every legally setup firm should consider having, mainly when a law contest arises. Amongst the files there is an affidavit form.
Sure, business involves around various activities from loan borrowings and lending, documents sharing, business records or data, and service operations. If legal proceedings arise in the organization, the court would require that the business show proof or testimony of its existence or operations. And that’s where an affidavit comes in handy.
What is an affidavit?
By definition, an affidavit is a written statement signed by an affiant (a person who signs an affidavit) as evidence in court to swear that the information contained in the document is accurate. For it to be admissible, an affidavit is notarized before a judge or notary public- state-appointed official that helps deter fraud.
What is an affidavit used for?
An affidavit can be used for various roles in different niches. Purchasing land or real estate, providing a relationship to a deceased person, and preparations for a lawsuit against a party, among other functions. Still, it’s significant for businesses to have one should the need arise.
An affidavit is used as proof in court that a claim is valid. For instance, most states businesses use an affidavit as a testimony to verify that certain information about their sales, transactions, products, or services is accurate and in existence.
Since the affiant signs to admit to the knowledge of the documents, they must ensure they read and understand the document’s content. This helps confirm that the information is accurate to their understanding. Any perjury would invite a penalty. So, the affiant must be careful with what they admit to.
Types of the affidavit a business owner should have?
The fact that the State regulates the process of making an affidavit official normalizes or ensures the affidavit has standard features. However, some would significantly serve business purposes when the need arises. As a business owner, you need to follow the jurisdiction processes to ensure compliance with the regulations.
Affidavit of Lost Note
Even the most careful business managers and lenders can sometimes misplace or lose lending documents. What next if that happens and the business didn’t have a lost promissory note? You’ll lose your details of the loans, and the company would not be in a position to claim its loans.
However, all is not gone when you create an affidavit of lost notes. It would help the business explain all the details and features of the original note, including the parties’ names and the amount or transaction involved. If the company misplaces the note, they will not lose the power to collect their loans. Therefore, business owners should ensure they make an affidavit of loss note as soon as they notice the loss.
Affidavit of Lost Document
Like the affidavit of lost note, the affidavit of a lost document is a testimony verifying that a record once existed. It can either be stolen, destroyed, or misplaced. So the business would need an affidavit of a lost document to request for a document replacement.
Business Records of Affidavit
Through a subpoena, a court may require a company to turn over its documents. When this happens, the business should ensure they file their records along with the paper. This is where an affidavit comes in handy. It helps the company has a sworn list of all items and materials that the business controls.
Bulk Transfer Affidavit
A bulk transfer affidavit is a form used by a business to alert its buyers and creditors of the amounts of their claims against the company.Therefore, if the business is bankrupt, the business owner should compile a bulk transfer affidavit listing all the claims against the business. This declares the business as the owner of its assets.
Affidavit of service
Also known as the proof of service, this statement helps verifies that parties in a legal proceeding have been issued specific documents. In other words, it’s proof that a business or a party has received particular legal documents from another party. The document prevents a party from saying they never received any legal document. So, when a business is involved in legal matters, they should ensure they’re served with an affidavit of service.
If you are unsure of the best affidavit for your unique case, visit our Affidavit forms section to customize a one for yourself.