Article by Gen Wright

Income Tax is levied progressively on the Adjusted Gross Income (AGI) of a person. The AGI is derived in two steps from the actual income of the individual. The actual income is first taken through basic deductions like employer paid health insurance etc. The amount obtained after the initial deductions is called the gross income. The gross income is then taken through the standard deductions list or the itemized deductions list, as may be applicable for the individual. At the end of the second stage, the AGI amount is obtained and the income tax is calculated on the basis of that amount.

There are multiple progressive slabs upon which the income tax is calculated. Below a certain amount of AGI, the income is considered exempt from tax. The slabs are regularly adjusted for inflation and other factors. Every person with an income is expected to prepare an income tax return and this includes minors and teenagers. Every citizen or resident alien that is earning is required to file a full tax return and pay the tax in full, every year within April 15th. An extension may be requested for the filing the return but the tax must be paid within the give date, which is 15th April every year.

There are several ways to file your income tax but each way requires preparing your returns and this the toughest part for most people. You must be very careful while preparing your return and make sure that you have mentioned everything. The tax returns require full disclosure of every taxable income, property and asset. You may not hide any part of your total income or else it will be considered tax evasion, which is a federal crime and can be charged as a felony.

Any delays in paying the taxes and filing the return will result in having to pay for fines and interest charges. Thus it is important to prepare your income tax return on time and with accuracy. But it is difficult job for many to prepare and submit their income tax because of complicated financial situations, like multiple business owners. So the IRS brought out a very helpful service called e-file, to help taxpayers file their returns online.

The IRS has approved certain competent websites to provide this e-file service to taxpayers. These websites offer complete tax solutions to their client in exchange of a small fee. Using these websites you can calculate your tax, prepare and file your returns and pay your taxes without doing any paperwork whatsoever. Preparing your income tax returns on their advanced software is a breeze and you will get help in form of suggestions and lists of various tax policies, deductions and tax credits. You can also file for an extension online (so that you can submit your returns later but you have to pay your taxes by April 15th). You can also schedule tax payments for future dates and use credit cards to pay your taxes through these e-file service providers.

About the Author

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Article by Chuck Kosmider

Preparation is the most important aspect of a successful paint job. Take your time and prepare walls for painting with the utmost attention to detail. You are probably anxious to get a new color up on your walls, but it is detail that is critical to achieve a satisfactory end result. An evenly done wall devoid of cracks will use less paint, while still managing to look great at the finish of your project. The time spent for the preparation before painting is the main factor that will ensure a top quality job, the protection of your home’s value and your own safety, too. And fortunately, preparing a wall for painting is easy to do!

To begin, clear the wall of anything which might be attached to it such as curtain rods or other fasteners. Take down curtains or window coverings.

Switch off the electricity at the circuit breaker and remove all the fixtures from the walls, including switch plates, outlet covers, and light fixtures or lamps. Cover any exposed wires to prevent them from being coated in paint by wrapping them in black electrical tape or an old grocery bag.

If you are looking to camouflage unsightly spots near the corners of your windows and doors, painter’s tape is the answer to those eyesores. (Masking tape works in a pinch, but for professional-looking results at no additional cost, using the blue painter’s tape works better and comes off easier than regular masking tape.) Another option is to take off the trim with a pry bar and shims.

Fill cracks and small craters with wall filler and use sandpaper to smooth. You can easily and rapidly fill in small holes with putty, whether created by nails, animals, or steel-toed boots (flour or cornstarch and water work well in a pinch).

Vacuum the walls or use a dry shop cloth to remove any dust once any wall defects have been repaired. After that, use a tri-sodium phosphate (TSP) solution and a thirsty sponge to remove any debris from the walls and surrounding area. Rubber gloves are recommended for protecting your hands during this step.

A clean water rinse and ample drying time is required before you continue. It’s hard to wait when you’re eager to finally get some paint on the walls, but do be sure that the walls are 100% dry first.

These steps are all you MUST really do to prepare a wall for painting, but it is highly recommended that you always apply a good quality primer (that is well-matched to your surface) before the paint itself is applied.

It should go without saying that the older or more damaged a wall may be, the longer and harder one must work on it to achieve a satisfactory paint job result. A little bit of preparation can make all the difference between a paint job that revitalizes your room, and one that just looks crummy. But by following these steps, you will be well prepared to paint your walls and have the end result look fabulous!

About the Author

Chuck Kosmider writes home maintenance tips and other home and garden solutions for HowToDoThings.com.

Essential supplies to stock up on while you still can. Anything can happen in these uncertain times. It’ll happen when you least expect it, and you’ll need to be prepared. Natural disasters, Martial law, Economic Society Collapse, Domestic terrorism are just some of the things that can happen. This shows some of the cheaper supply options. There are some pretty good alternative options if your willing to spend the extra money. MREs have at least a 5 year shelf-life. Also a water filter would be great. I tried to add as much info as I could, and the video still went over 10 minutes. There may be a few items missing(garden seeds, vitamins, over the counter and prescription medicines, toilet paper, tampons, ect.). Also there are items that only pertain to your situation. Thanks. Thanks!!! And Be prepared and stay safe!!!

Article by Arvind

Article provides information as how one should choose a tax preparer online for outsourcing tax preparation services to monitor business and finance safely.

Preparation of tax returns should be done very cautiously, because the tax payer is responsible for each and every word written on the tax return even though it is prepared by a professional. The preparer should be able to provide you with practical and convenient tips for tax saving.

You can find an efficient tax preparer online only if you put genuine efforts in searching for one.

Check while hiring tax preparer online

There are certain things that one should follow when hiring an individual or a firm for online tax preparation:

• Legally speaking, the professional preparer should sign the returns form in the preparer areas. He/she should furnish the identification number on the return. He or she should give a copy of the return to the tax payer.
• The preparer should be very accurate with filling in your details. Your personal information along with your registration number should be mentioned accurately.
• The tax preparer should be efficient in online accounting.
• Do not sign on blank tax returns form ever and do not use a pencil for signing as the signature can be easily erased and your signature replaced.
• You should present any notices and refund checks that you might have got from your attorney to the tax preparer for preparing the returns.
• Online bookkeeping is something that your tax preparer should be efficient in.
• The tax preparer should be adequately qualified and experienced for his/her job, because each and every word he or she writes in the return from is evaluated by the tax collection authorities, and there is every opportunity of the tax payer being penalized for terms that are vague or seem to be unreliable.

Online Tax Preparation Process

Tax preparation should be done with a lot of caution as each and every word mentioned in the tax returns form is the responsibility of the tax payer, even though it might be prepared by another person, a professional or a firm. The tax preparer should be well versed in his/her work. He/She should be adequately qualified and experienced to prepare the tax returns statement. He/She should fill out the form with clear and reliable statements and should sign the tax returns form wherever applicable.

He/She should fill in the areas on the tax return form where the preparer’s information is required. Details like identification number should be clearly furnished on the form and should be signed. The person should not leave any blank areas. The details of the tax payer presented on the returns form should be accurate. It is mandatory for furnishing the registration number of the tax payer. The tax preparer should be able to provide easy-to-implement tax saving tips, and he/she should be adept at online bookkeeping and accounting. Any notices and refund checks, if obtained from an attorney, should be furnished to the tax preparer. On the whole, preparation of tax return statements should be done in a very careful manner as mistakes might cost the tax payer a lot.

About the Author

To monitor your business and finances online through trustworthy and secure connection, try online tax preparation services free for 1 month, visit the National Leader in outsourcing Tax Preparation services having more than 20 years of experience in online accounting services.

Article by Chuck Mache

You’ve probably heard the story of the golfer who steps up to the tee box and hits a wicked duck hook out of bounds. Embarrassed, he reaches in his pocket, tees up another ball and again, hits another horrific twisting shot left out of bounds. Now angry and determined, he walks back to his bag, gets another ball, tees it up again, and duplicates his first two shots out of bounds to the left. In a fit of frustration, he slams his club into his bag, aggressively flings his club over his shoulders, mumbles some choice expletives to himself as he’s chipping his teeth, and heads up the fairway uncertain as to where he’s going to drop a ball to make his next shot.



I use this as an analogy often in my talks with groups when discussing business professionals who are determined to be successful yet continue to fail. People like:



* The determined sales executive who is working extremely hard and is not bringing in the sales and makes the decision to work even harder.

* The determined manager who has a tight grip on her team but cannot get them to take their game to the next level, so she implements even more controls.

* The determined leader whose company is not reaching their numbers and meets endlessly with his team to discuss solutions, but he keeps asking the same questions over and over again to the same people, never getting any outside opinions.



So, in these examples, what’s missing? You certainly can’t fault their determination, can you? These people possess many characteristics of a determined individual. Their persistence, assertiveness, and even aggressiveness are to be admired, right?



Well, yes and no.



You must be determined to rise to the challenge when faced with adversity, challenges, even hardship. However, determination alone doesn’t solve problems.



In my daily work with others, I encounter many different executives in sales, operations, management, and leadership roles who are very determined people. They are successful on many levels, yet many are also struggling to breakthrough to new levels and have hit a wall in terms of how to get there. Usually it is because the very thing that got them this far, their determination, is missing a key ingredient: the willingness to make intelligent changes along the way.



People who make personal and business related breakthroughs of any significance are first and foremost determined individuals. However, inside their determination is the ability to learn from their actions and constantly change those actions until they reach their desired goal. Trial and error causes them to rethink and retool their strategies. Their determination is fueled by their willingness to make intelligent changes and adjustments along the way.



Here Are My Top 5 Things You Must Do Today For Breakthrough Achievements Tomorrow and Beyond:



* Write down the goals you want to achieve and list the obstacles or roadblocks that keep you from reaching them. Be thorough.

* Brainstorm three new ways to get around the roadblocks. Make sure they’re things you’ve never tried before. Run your ideas by someone you have confidence in and see if they can add to or give you any new ideas. Better yet, meet with someone who has achieved the goal you are after. Be open-minded.

* Turn the three best ideas into actual strategies and prioritize them with the most important coming first. Be bold and take some risks outside of your comfort zone.

* Put tactics behind those three strategies. Be detailed on the little tasks you have to complete to implement your strategies.

* Start with your best strategy and implement with pure determination. If that doesn’t work move on to the second one, and so on. If you’ve exhausted the three best ideas and still have not achieved your goal, make a list of three more ideas and repeat the process. Make intelligent changes.



Successful people have a “crack the code” mentality.



Successful business leader, executives, employees and people in general are forever making changes to their problem solving approaches until their problems are solved. Then, they move on to a new one. Like the golfer used in the example, if your duck hooking the ball off the tee – change your grip, your stance, your back swing, something. Don’t do the same thing harder and expect different results. Fuel your determination with intelligent changes along the way.

About the Author

Breakthrough Achievement Architect, Chuck Mache has 25+ years of experience in selling, managing, building and leading sales organizations regionally and internationally. Now you can use his transforming knowledge to find your way to growth, development and breakthrough achievement in 30 days or less. Get his book, The Four Kinds of Sales People: Your Personal Path to Breakthrough Achievement, at http://www.chuckmache.com

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Article by Matthew Toone

Is your success determined entirely by you alone, or do other people actually determine or contribute to your success? Every article and blog entry I have ever written would suggest that we alone determine and create our own potential, are solely responsible for the realization of our dreams and goals, and are ultimately the one’s who control our destiny and successes. While that is absolutely true, one must understand the difference between the words ‘determine’ and ‘contribute.’ To determine is to control, decide upon, or cause; and to contribute is to simply assist, supplement, or help. Thus, you alone determine your potential and success, but remember that others can (and certainly must) contribute in order for your goals and dreams to be realized.

Considering this perspective, it is absolutely essential to understand more fully, and more specifically, how we determine and how others contribute to our success. Let me suggest three essential concepts that must be understood and implemented in order for our successes to be accomplished:

1) You Alone Determine Your Potential: We must first understand that our potential in life is not determined by uncontrollable circumstances and settings, racial or gender characteristics, or even economic conditions or access to knowledge. And it must certainly not be defined or determined by others. Success and potential are created, developed, and determined within ourselves. Because success, greatness, and potential are determined by us alone, we must recognize that all of the characteristics necessary to achieve our goals and dreams already lie within us. If we actually realized how capable, brilliant, talented, beautiful, and powerful we really were (or could be), it would not only astonish us, it would inspire us. And yet ironically, most people are not ignorant of this reality, they just willfully choose to ignore it because they are afraid of their own potential or they are not willing to put in the work necessary to achieve it.

2) Take Advantage of a Mastermind Group: Although our success is determined by us alone, we must recognize and accept the fact that we absolutely need others in order for our goals and dreams to be realized. The talents, knowledge, expertise, services, ideas, warnings, and counsel of others are vital to our success. For an entrepreneur wanting to start a business, for example, a ‘mastermind group’ might consist of legal advisors, financial experts, business partners, co-workers, industry experts, or even family and friends (and ideally a combination of them all). The people included within this type of mastermind group must be trusted enough to share business ideas, and also enhance them. For the person wanting to learn how to develop a talent, for example, their mastermind group may simply be family and friends. This mastermind group must be composed of those people who will encourage, inspire, and assist them – through the good and the bad times. Regardless of what the pursuit is or who forms the mastermind group, the key is to be humble and open enough to go to and receive help from these other people, to both share ideas and bounce ideas off of, and to utilize the expertise of those helping – and be willing to help them also.

3) Learn How to Network & Who to Associate and Work With: An individual who is unwilling to network with others can still accomplish their goals and dreams – it will just be much more difficult. To ‘network’ is to meet, associate with, contribute to, and be benefited by other people. And yet, for networking to be truly effective, it must be more than just a casual meeting, and it certainly must be mutually beneficial. Thus, those who network simply to ‘schmooze’ or selfishly obtain what they desire will usually fail in their attempts because effective networking entails continual contact, as well as both parties continually benefitting each other. Just as important as networking, one must understand the significance of surrounding themselves with like-minded and more talented people. Those individuals who have accomplished great things will collectively agree that they surrounded themselves with people who contributed to their goals, encouraged them, thought similarly, and did not detract or weaken their ability or resolve. They will also agree that their success was partly due to their own drive, courage, and actions; but certainly, it in large part resulted from the abilities, knowledge, ideas, services, time, warnings, and help of others. They understood and implemented the Law of Attraction. And, they were humble enough (and wise enough) to surround themselves with people who were more brilliant, experienced, talented, and capable.

Your goals and dreams will only be attained when you realize that you determine your own potential, and that others must certainly contribute in order for your successes to be accomplished.

About the Author

Matt founded http://www.awakeyourpotential.com/ – a website focused on inspiring people to accomplish their dreams and learn the secrets for success in anything. Matt recently accomplished one of his dreams – to write a book! His book is entitled: “Great Games! 175 Games & Activities for Families, Groups, & Children.” To view the book and learn more, visit: http://www.greatgamesbook.com/

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Article by nyangu simpungwe

One becomes great only if determined to do so, by saying I will and I must – and where there’s no way, either finds one or makes one. But not from without – If we could first know where we are, and whither we are tending, we could then better judge what to do, and how to do it.

A person of substance is always looking for ways to improve and never goes backwards. Determination is a force multiplier, don’t let go of your dreams. If you have determination and belief in your dreams, you will succeed in spite of your desire to let go. One of the greatest principles on success is persistence, if you persist long enough, you will win – within each of us is a hidden store of determination. Determination to keep us in the race when all seems lost – Never stop, One stops as soon as something is about to happen.

People stop because of uncertainty and disappointment – they are looking for smooth seas – Smooth seas do not make skillful sailors. – People do not know the outcome to whatever it is they are doing, all they experience are temporal defeats that they eventually allow to submerge them. Had they stuck it out a little longer, they would have risen above temporal defeats. Do not quit, just take the next step in faith – Faith is taking the first step even when you don’t see the whole staircase. Once you take that step, be sure you keep your feet in the right place, then stand firm and repeat the steps.

When an individual is determined, that individual ensures motivation becomes a personal daily process. Motivation is a fire from within. If someone else tries to light that fire under you, chances are it will burn very briefly. Andrew Carnegie said ‘People who are unable to motivate themselves must be content with mediocrity, no matter how impressive their other talents.’ Be miserable. Or motivate yourself. Whatever has to be done, it’s always your choice.

The failure to attain what we want does not create a new problem. It merely makes more urgent the necessity of solving an existing one – If we have the courage to pursue our dreams – all can come true, the means we use must be as pure as the ends we seek. Walk slowly if you may but never walk backwards – prepare and some day your chance will come.

Master courage; courage is resistance to fear; Courage is mastery of fear – not absence of fear. The person who resists or attenuates fear is an individual who is thoroughly prepared in every activity that causes that fear in the first place. Go by, prepared and with courage, and fear will be contained – the only fear that will be available is the one to keep you in check, that what you are doing is of uttermost quality. Undertake something that is difficult; it will do you good – Fear is not a difficulty, but an opportunity… as Norman Vincent Peale once said ‘The individual who know the score about life sees difficulties as opportunities.’

The surest way not to fail is to determine to succeed, and success comes from preparedness. If you want to make it bad enough, no matter how bad it is, you can make it. The difference between the impossible and the possible lies in the person’s determination – plan and execute as per Abraham Lincoln’s saying ‘Give me six hours to chop down a tree and I will spend the first four sharpening the axe.’ Be determined and when you are, you will endeavor to get prepared to overcome.

A man should look for what is, and not for what he thinks should be. We are often acting on perception instead of what is – Stand up to your obstacles and do something about them. You will find that they haven’t half the strength you think they have.

Nyangu Simpungwe is a professional accountant, a fully qualified chartered certified accountant and holds a Masters Degree from The University of Glamorgan in Wales.

He is Author of a book “Try Easier…” Become The Best You Can Be

http://www.try-easier.com

About the Author

Nyangu Simpungwe is a professional accountant, a fully qualified chartered certified accountant and holds a Masters Degree from The University of Glamorgan in Wales.

Article by article publisher

With the introduction of Pfizer made Viagra, impotence or erectile dysfunction has become the topic of past. This FDA approved anti-impotence medication has made a special niche among people who have been suffering from impotence. But due to high cost and various formalities to fulfill, it is out of reach of various people. This is the main reason behind the formulation of generic Viagra. Generic Viagra is also formulated by the same active ingredient (sildenafil citrate) used in the formulation of Pfizer made Viagra. It is available at easy on the pocket prices because there is no requirement of any research and experiment of the medication as it has been completed with the formulation of branded medication. It is the cost and color of the medication that make both medications different from each other.

Generic Viagra also starts working within a few minutes and lasts up to four hours. During this time, if you feel any problem, you should seek medical help as soon as possible. The medication makes men able to achieve and maintain firm and long erection during the sexual intercourse. The medication takes men to the extreme level of pleasure and satisfaction. Generic Viagra helps in the relaxation of penile arteries and also improves blood flow efficiently. In this way, the medication helps to achieve as well as maintain an erection necessary for sexual activity.

Generic Viagra comes in the form of tablet that is prescribed for oral administration only. However, before you place your order to buy generic Viagra, you should tell the doctor or pharmacist about your previous and current medical history. It is vital for better and much improved results. If you are allergic to its active ingredient sildenafil citrate, you should not use the medication as it may be harmful for you. Like other medications, it may also cause to some common side effects like headache, back pain, nausea and some others. However, signs of side effect last for a short time and disappear automatically. If any of the side effects lasts for some more time, you are advised to stop using the medication and seek medical help immediately.

About the Author

DiscreetPharmacy.net provides you with complete information on Generic Cialis, Levitra, Viagra and other drugs to treat your erectile dysfunction. It is one stop source to Buy Generic Cialis, Viagra and other sexual enhancement drugs.

Article by Ryan Mutt

Most of the men or even women assume that every man has skills and knowledge to give a woman complete pleasure and satisfaction including multiple orgasms. However this is not so, man need to have some understanding beyond normal lines about woman’s desire and needs to give her the stream of orgasms one after the another. There are few fixed rules and some need to be applied as per female partner’s mood and biology. It is said good lovers are those who are able to give orgasm to a woman but only great lovers can give multiple orgasms.

Create the environment, women never like rushed into sex, they may give in to the wishes of their male partner but at the bottom of their heart they want it to start and go slow till it becomes really hot. Prepare the bed and the room, change the sheets, put on the room freshener and do not forget to keep things which she loves or may need close to the bed. Take a shower and shave and dress pleasingly. Act in such a way as if this whole night is for her pleasure and fun, whatever time you are going to spend together is for her and nothing else, switch off your phone and wipe away all sort of distractions.

It is said a deed equals thousand words but in bed, with your girl, beautiful and praising word can equal thousand deeds. Tell her how attractive she is, what is it in her body you go crazy about, draw her closer and talk to her while putting your arms round her body with not too harsh or too weak grip. You can also use these techniques to keep her involved and interested in the act when she is recovering from an orgasm to give her multiple orgasms.

Once she is mentally ready start with passionate kisses, move your hands all over her body while you kiss her, to arouse her completely. Always remember almost all the women appreciate longer foreplay, you can use activities which she likes during foreplay to arouse her again and again to give her multiple orgasms. If she has had an orgasm give her a break, do not repeat same activity over and over again but do keep her involved by saying lovely words in her ear or caressing and touching her body.

Move away from her vaginal area after an orgasm as female genital may get little bit sore if massaged or caressed continuously after orgasm. Combing her hairs with your fingers, talking about beautiful moments you two have spent together, kissing her hands or legs while she is regaining from one orgasm will indicate to her that there is more to come and you will be able to arouse her again and again to give her multiple orgasms.

You can keep a sexy magazine or adult joke book to help you in keeping your girl’s mind into the act during the break. Do not ever talk about your real life problems or worries, these can evaporate a woman’s mood in a flash. Maintain the tempo but do slow down in between for her to regain strength and sensation to climb another peak of ecstasy after one.

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About the Author

Ryan Mutt

Article by Dan Ramse

Sexual satisfaction is an important part of a human beings life. The male is all the more after sex because of various reasons. Studies have shown that men are the most assertive as far as sex needs are concerned. The men who are not able to have sex with a female or are not able to satisfy the female are at a great disadvantage. They are not able to overcome their needs and they feel that the only way they can satisfy their sexual needs is to buy Viagra. Many men who buy Viagra and use have had some kind of success in their sexual relation.

The men who use various kinds of drugs have not been able to completely satisfy the female sexual partner because the sexual encounter ends in failure or a partial success only. This happens because the treatment used for the treatment of erectile dysfunction causes the person to have a partial erection and not a complete erection. Some may not have any effect at all.

In this situation, the best method of ensuring that the male and the sex partner has complete sexual satisfaction is by using the Safemeds products Generic Viagra Online and Generic Cialis. These products have been used by many men and they have had complete success in satisfying not only their own sexual needs, but also satisfying the sexual needs of their partners.

Safemeds is the easiest place to buy the drug too because of various reasons. The site is always live for you to buy the drug. Many people feel that buying drugs in a pharmacy does not give them enough privacy, but the buying of Generic Viagra and Generic Cialis from Safemeds ensures that you will have 100% of privacy as you are the only person who knows that you have bought the drug.

Safemeds accepts various kinds of payments too and so you do not need to other about the method of payment. All these benefits that are given by Safemeds for the people who buy Generic Viagra and Generic Cialis is to ensure that they will be able to benefit from these generic drugs that will help to make the men and women have complete sexual satisfaction.

Using the Safemeds products will also be completely successful because the drugs do not cause any side effects at all. This is contrary to many of the other treatments that cause various side effects that neutralize the effect of the treatment. So if you would like to have complete sexual satisfaction in spite of suffering from erectile dysfunction, then the best method is to use the Safemeds products Generic Viagra and Generic Cialis to treat and cure the disease completely without any side effects or other problems.

About the Author

Safemeds accepts various kinds of payments too and so you do not need to other about the method of payment.

Article by John D. Waller

Today’s article will explore the second, and successful, defense asserted by defendant Jackson, namely that the Note was unenforceable for lack of consideration. Part I of my commentary about Jackson v. Luellen Farms discussed how the Indiana Court of Appeals arrived at its conclusion that Jackson could be personally liable on the Note. Keep reading, however, to gain an understanding of the concept of “consideration,” particularly in situations involving antecedent debt, and how the Court ultimately ruled in Jackson’s favor.

Consideration, general rules. Because the Court deemed the Note not to be a negotiable instrument, the UCC and specifically I.C. § 26-1-3.1-303(b) did not apply. (Section 303 articulates what “consideration” is under the UCC.)

For a contract to be valid, there must be an exchange of consideration, as noted by the Court in Jackson, “Consideration is defined as ‘[s]omething of value (such as an act, a forbearance, or a return promise) received by a promisor from a promisee.’ ‘To constitute consideration, there must be a benefit accruing to the promisor or a detriment to the promisee.’”

The plaintiff creditor, LFI, argued that there was consideration for the Note because of the unpaid balance owed by HPI to LFI at the time of the Note’s execution.

Past consideration. In fact, the Note was a promise by Jackson to pay an antecedent (prior) debt of a third party, HPI. The Indiana Court of Appeals held that the promise was not enforceable because “past consideration” generally cannot support a new obligation or promise. As stated by the Court, in Indiana, “if a person has been benefitted in the past by some act or forbearance for which he incurred no legal liability and afterwards, whether from good feeling or interested motives, he makes a promise to the person by whose act or forbearance he has benefited, and that promise is made on no other consideration than the past benefit, it is gratuitous and cannot be enforced.”

Neither HPI nor Jackson received any benefit in exchange for the Note. Jackson, personally, had no liability on the debt when he signed the Note – only HPI did. There was no evidence that Jackson signed the Note in exchange for LFI’s promise to delay collection (forbear), in which case there would have been consideration.

Valid guaranty? LFI actually was angling to assert that the Note was a personal guaranty. Under Indiana law, “it is not necessary for a guarantor to derive any benefit from the principal contract or the guaranty for consideration to exist.” But, generally the guaranty must be made “at the time of the principal contract” (for example, when the tomatoes were delivered). There are exceptions to this general rule, but none of them existed in Jackson. There was, therefore, no legal consideration to support the alleged guaranty of HPI’s debt to LFI.

Too late. The tomato grower lost the case for a lot of reasons, including most importantly the fact that Jackson, individually, did not promise to pay HPI’s debt at the time the tomatoes were delivered. Even then, once HPI began having trouble paying LFI, there still could have been personal liability had Jackson signed the Note in exchange for LFI’s forbearance in collecting against HPI. The Court said, “[t]he problem in Jackson is that neither Jackson nor [HPI] received anything of benefit pursuant to the Note. Instead, the only party that benefitted from the Note’s execution was the promisee, LFI. Although Jackson had some motive to sign the Note, the Note was not supported by consideration. Under these circumstances, LFI may not enforce the Note against Jackson.”

In most commercial cases, there will be appropriate and timely loan documentation. So, the circumstances present in the Jackson case may not be common in the day-to-day operations of most commercial lending institutions. If, however, you as a lender agree to forbear on a borrower’s debt and, as a part of that agreement, intend to obtain for the first time some kind of personal guaranty, make sure the loan documents are clear that the parties intend for there to be personal liability and that appropriate consideration (exchange of benefit) exists.

About the Author

John D. Waller is a partner at the Indianapolis law firm of Wooden & McLaughlin LLP. He publishes the blog Indiana Commercial Foreclosure Law at http://commercialforeclosureblog.typepad.com. John’s phone number is 317-639-6151, and his e-mail address is jwaller@woodmclaw.com.

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