BUS2 531 Lecture Notes - Lecture 18: Academy Of Social Sciences, Estoppel, Payment
Document Summary
We have focused on the concept of holders and holders in due course. Holders are persons in possession not any holder, needs to be the payee or endorsee. Extraordinary holder holder in due course (special rights: mere personal defenses cannot be raised against a holder in due course. If you satisfy all three requirements for holder in due course, you have a very powerful claim (s. 55: 1. Has to be a holder (person in possession of the instrument, valid chain of endorsement, need to be the payee or endorsee) The notary is not a valid endorsee: 2. Holder must be in good faith (not aware of any problems between the drawer and the payee contractual reason: 3. Consideration (the holder in due course needs to pay for the instrument) If the initial payee uses on the basis of instrument, cannot have more rights than the rights conferred by the initial contractual agreement.
