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Simple English definitions for legal terms
vermenging
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A quick definition of vermenging:
Term: Vermenging
Definition: Vermenging means when two companies merge, and the debt owed by one company to the other is extinguished because their interests have become the same. It's like when you and your friend share your toys, and you forget who owns which toy because you're playing together and having fun.
A more thorough explanation:
Term: VermengingDefinition: Vermenging is when a debt is cancelled because the debtor and creditor become one entity. This happens in situations like a company merger, where the debt owed by one company is cancelled because it is now part of the new merged company.
Examples: When Company A merges with Company B, and Company A owes money to Company B, the debt is cancelled because they are now one company. Another example is when a person owns a business and owes money to the business, but then decides to make the business a sole proprietorship, the debt is cancelled because the person and the business are now one entity.
Explanation: Vermenging is a legal term that describes the cancellation of a debt when the debtor and creditor become one entity. This can happen in various situations, but the most common is in corporate mergers. The examples illustrate how the debt owed by one entity is cancelled because it is now part of the new merged entity.