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Simple English definitions for legal terms
general intangible
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A quick definition of general intangible:
A general intangible is something valuable that you can't touch or see, like the right to publish a book or the good reputation of a business. It's hard to put a specific value on these things. They are important when people borrow money or make deals because they can be used as collateral, which means if the borrower can't pay back the money, the lender can take ownership of the general intangible instead.
A more thorough explanation:
A general intangible is a type of asset that does not have a physical form and is difficult to calculate. Examples of general intangibles include literary rights, goodwill, and things in action. These types of assets are important in secured transactions.
According to the Uniform Commercial Code (UCC), general intangibles can be any personal property except for money, documents, investment property, instruments, goods, accounts, chattel paper, proceeds from letters of credit, and oil, gas, or other minerals before extraction.
For instance, in the case of Ciprian Ltd. v. Oxford Dev. Co. Grant St., L.P., creditors were entitled to the proceeds from the sale of a debtor's liquor license, which is considered a general intangible. This means that even though the liquor license is not a physical asset, it can still be used as collateral for a loan or other financial transaction.