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Simple English definitions for legal terms
closed transaction
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A quick definition of closed transaction:
Term: CLOSED TRANSACTION
Definition: A closed transaction is when a business deal or exchange has been completed and all the necessary steps have been taken to finalize the agreement. This means that all parties involved have fulfilled their obligations and the transaction is considered complete. Think of it like finishing a game of checkers - once all the pieces have been moved and the game is over, it's a closed transaction.
A more thorough explanation:
A closed transaction is a completed business deal where all parties involved have fulfilled their obligations and the transaction is considered final.
For example, if a person sells their car to another person and receives payment, and the buyer receives the car and all necessary documents, the transaction is considered closed. Both parties have fulfilled their obligations and the deal is final.
Another example could be a real estate transaction. Once the buyer has paid the agreed-upon price and the seller has transferred ownership of the property, the transaction is considered closed.
These examples illustrate the definition of a closed transaction because in both cases, all parties involved have completed their responsibilities and the deal is considered final. There are no outstanding obligations or issues to be resolved.