Unit 3 Flashcards
Negotiable instrument
Negotiable instruments are traditionally described as instruments in the same way as cash are are transferable by delivery all by delivery and endorsement and on which the holder is entitled to sue in his own name
Negotiate
To transfer in such a manner that purchaser in good faith will require more rights to the instrument than his predeceaser had The so-called transfer free from equities or negotiation of a bill holder in due course
Negotiation
Transfer an instrument in such a manner that the transferee is constituted a hold of it
Where instrument is negotiated I Nemo transfer reindeer not only will ownership of the instrument to be transferred but also the personal rights embodied in the instrument
Order
Express to be so payable or if it is expressed to be payable to a particular person and not indicate an intention and does not contain Words prohibiting transfer or indicate intention that it shouldn’t be transferable
Bearer
Express to be so payable or if only all lost endorsement is endorsement in blank or expressed to be payable to order of cash or cash or
Endorsement
transfer and delivery of a bill and says that an indorsee acquires rights and actions of he’s indorser results achieved if the parties intended to transfer these rights
Cession
Is the delivery or transfer of personal rights by agreement
Issue
First delivery of a bill complete in form applies and unless context indicate otherwise
Indorsement 1st def
Signature on a bill whether it is placed on it as a receipt all by way of identification or in order to effect negotiation or incur liability
Indorsement- 2nd
Signature placed on a bowl with the intention of Undertaking the well understood liabilities of indorser
Indorsement 3rd
Completed by delivery of the instrument. Founds liability and brings about negotiation
Blank endorsement
Specifies and no indorsee and a bill so indoresed becomes payable to bearer
Special endorsement
Specifies the person to whom or to whose order the bill is payable
