LAW 603 Lecture Notes - Lecture 4: Negotiable Instrument, Cheque, Mens Rea
Document Summary
3 differences with regard to negotiable instruments as contracts (p. 336) Chapter 14: special contracts negotiable instruments (p. 335: consideration. Consideration under a contract can also be consideration for a negotiable instrument: privity. With a (cid:272)he(cid:395)ue, a(cid:374)(cid:455)o(cid:374)e that holds it (cid:272)a(cid:374) sue o(cid:374) it (cid:894)(cid:455)ou do(cid:374)"t (cid:374)eed p(cid:396)i(cid:448)it(cid:455)(cid:895: assignment. Negotiable instruments can improve as it is passed on to another person. 5 mandatory requirements for all negotiable instruments (p. 338: signed and written, parties clearly identified, certain sum of money, certain time of payment, unconditional obligation. Cheques (p. 339: drawer and payee have 2 contracts (sales contract; cheque, drawer and drawee have 1 contract (chequing account agreement, drawee and payee have no contract. Payee can deliver bill to drawee before payment date to request an assurance that it will be honored/paid. Drawee has an option to: dishonor (cid:1006). Ho(cid:374)o(cid:396): b(cid:455) (cid:449)(cid:396)iti(cid:374)g (cid:862)a(cid:272)(cid:272)epted(cid:863), dati(cid:374)g a(cid:374)d sig(cid:374)i(cid:374)g bill a(cid:374)d (cid:396)etu(cid:396)(cid:374)i(cid:374)g to pa(cid:455)ee. Can be used to pay in lump sum or instalments.
