LAW 603 Chapter Notes - Chapter 14: Daily Bugle, Cheque, Negotiable Instrument
2 Nov 2017
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14: negotiable instruments: negotiable instruments: consists of a contract that contains an obligation to pay money. Daily bugle could sue you on the cheque even though it was not originally a party to that contract: assignment, a negotiable instrument represents a compromise between a simple contract and money, major risk: non-performance. An order by one party (drawer) that directs a bank (drawee) to provide money to someone (payee) Identify parties: signed and written, certain sum of money, time of payment, unconditional obligation. An order by drawer that directs another party (may or may not be a bank) to provide money to someone. A promise by one party (maker) to pay money to payee. 2: negotiable instruments can be negotiated-- transferred from one party to another. If person who is primarily liable under an instrument is unable to pay, you must give notice asap to everyone who might want to sue: failure to do so means your rights are lost.
