BUS2 531 Lecture Notes - Lecture 16: Cheque, Payment, International Trade
Document Summary
Unconditional order in wiritng, it"s an order, not discretionary. Needs to be signed by person giving the order. Who has not signed does not attract liability on the instrument. The definition relies on the bank-customer relationship. E. g. fur coat manufacturer purchases fur from the hunter. Certain amount: for this system to work, there needs to be certainty on the face of the instrument specific amount. Bills of exchange drown on bearer rarely exist now: they were meant to circulate more easily person to whom the drawer owes money to. 165 (1) a cheque is a bill drawn on a bank, payable on demand. This tells us there is a class of other person on whom these orders can be drawn: e. g. merchants that you trade with who owe you money. International trade continues to base on paper still encounter bills of exchange: bills of lading. Cheques are still used a lot in canada and us.
