BLAW 4203 Chapter : BLAW 4203 Negotiabe Instruments
Document Summary
Negotiables=eliminates all of the personal defenses on the paper-failed consideration, induced to sign, breach on contract, etc. Cash is the most liquid, negotiable instrument by a holder in due course (real defenses), negotiable instrument(real defenses, personal defenses), non negotiable instrument (real defenses, personal defenses), debt (verbal promise to pay, real differences, personal defenses, proof problem) Cd promissory note (non negotiable)-subject to real defenses, personal defenses always. Neg item holder and non neg item holder face the same amount of risk, but ni holder can turn into a ni holder in due course. Purchaser of medical supplies is getting 2. 5 mill supplies from a manufacturer (med inc), buyer gives a note and med inc will give supplies. Med inc is selling to bank for 2. 4 mill, and they are delivering the note. Pay in blank installments of blank, on the blank day, at a rate of blank and signed and dated by buyer (nothing filled in on the note)
