BLO 3405 Lecture Notes - Lecture 9: Theft, No Liability, Negotiable Instrument
31 Jul 2021
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Blo3405: what is a bill of exchange, mainly used in international trade, known as a negotiable instrument. ", common example is a cheque. Essential element is that the debt should be easily, cheaply and freely transferable to another person (holder). e. g mei owes a debt of ,500 to delta: mei writes out and gives delta a cheque for ,500. It reads pay delta or bearer"): delta is now holder and owner of it. Deposit the cheque to its account and wait for the funds to be cleared, or: concept of negotiation. Mei would have an obligation to pay that third party. In this way, they can mobilise short term capital. Title: generally, owner (final holder) obtains clear title to the instrument, even if an earlier party lacked title due to theft. Contrast this with transfer of stolen goods where the thief is unable to transfer title even to an innocent buyer.
