bulk sale

(redirected from Bulk sales act)
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Bulk Sale

The sale of a large number of real estate properties at the same time as if they were one unit. The properties are not connected and usually have nothing in common except that they are sold in the same transaction. Bulk sales developed as a way to divest oneself of a real estate investment.

bulk sale

Transfer of all or substantially all the assets of a business. Some states have bulk sales laws requiring notice to creditors before any such sales,so that a debtor may not liquidate all assets, pocket the money,and leave creditors holding the bag.

References in periodicals archive ?
The historical comment to the Bulk Sales Act suggests this provision was intended to combat two forms of fraud by a debtor: (1) where a debtor sells its assets to a friend or family member for less than fair value, pays creditors less than the full amount of their claims, and restarts the business under a new name; and (2) where a debtor sells its assets for any price and then absconds with the sale proceeds.
The parties to the sale contended that by complying with the Bulk Sales Act there can be no claim by the debtor's creditors for fraud.