compromiso en firme firm commitment

Creator:	Nedra Rivera Huntington
Language pair:	Spanish to English
Discipline:	-
Definition / notes:	Firm commitment An agreement with an unrelated party, binding on both parties and usually legally enforceable, with the following characteristics: 1. The agreement specifies all significant terms, including the quantity to be exchanged, the fixed price, and the timing of the transaction. The fixed price may be expressed as a specified amount of an entity's functional currency or of a foreign currency. It may also be expressed as a specified interest rate or specified effective yield. 2. The agreement includes a disincentive for nonperformance that is sufficiently large to make performance probable.
URL:	http://www.fasb.org/derivatives/issueh5.shtml