Bears to the Sum of ???

[bob1212]

I am trying to understand this term in a legal document but I can barely find a mention of it online anywhere.

Let's say I owe my suppler $400k, bears to the sum of $325K, what do I owe my supplier ?

I think it means 400k - 325k = 75k ?

Someone else is telling me it is a factoring whereby I owe

400k + ((400k / 325k) x 400k) = 400k + (400k x 1.23) = either 492K or is it now 892 ? doesn't make sense.

If I have already paid 200k from the 400k so I owe

200k bears to the sum of 325K, in my book, they now owe me 75K.

But I am being told it's

200k + (200k / 325k) X 200k = 200k + 200k x 0.615 = approx 120k plus 200k, I owe 320k

The whole thing makes no sense, it's daft wording unless you understand it correctly.

 

[kirby]

"Legal document interpretation needed" means you need to post this on a "legal question" forum.

 

[bob1212]

it relates to money, so it should also be a commonly used accounting term - unless the lawyers have their head in their asses which is not uncommon - i have never seen this term used anywhere and hours on google produced one vague reference in a Federal pension document that doesn't relate to debt.

 

[Fidget]

"Bear" is not an accounting term.

But, to 'accept the burden', is a definition of "bear". So if legal advice is saying 'bears to 325k", then that is suggesting to me that that is the amount you would have to pay.

That's my own opinion, and up to you to find clarification.

 

[bob1212]

I have found it in very high end Govt legislative documents for example this one I think from Canada :

"the amount payable to the provinces in respect of the extended health care services program pursuant to subsection 23(2) of the Act bears to the sum of the amounts of the entitlements of all provinces,"

it means that it is a distribution based on a ratio of some kind.....

in my case, it's a royalty payment.... so lets say I owe 100k, bears to the sum of 100k royalties due to two people, it means that I owe 50k, since 50k of royalties is due to me anyway.