Unit 4

Question 1

Bills of exchange

Answer 1

Is an instrument which embodies a right of action in such a way that the right may be exercised through possession of the instrument

Question 2

Holder

Answer 2

Is the payee or indorsee of a bill who possesses it or is bearer

Question 3

Bearer

Answer 3

Person who is in possession of the bill payable to bearer

Question 4

Payee

Answer 4

Person to whom the bill is originally made payable

Question 5

Indorsee

Answer 5

Person to whom all whose Order a bill is payable by virtue of special endorsement

Question 6

Protest

Answer 6

Formal act done at the request of the owner of a bill or holder acting as owners mandatory to prove a drawee refusal to pay or to accept bill

Question 7

Holder in due course

Answer 7

Acquires ownership in the instrument even where he acquires it from a non-Dominus and takes it free from any defects in title and give mere personal defences available to prior parties among themselves