LAW 603 Lecture Notes - Lecture 1: No Authority, Fot, Gie
17 Oct 2016
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Date: 1/28/2015 chapter 14 negotiable instruments. Negotiable instrument: consist of a contract that contains an obligation to pay money. Easier to probe existence of a negotiable instrument than a sales contract. Consideration: something of value must be given in exchange for it. Normally cannot consist of promise to perform an obligation that is already owed to same party. Someone who did not participate in the creation of the agreement cannot sue for it. A person who receives a contractual right through an assignment takes the subject to equity. Privity: usually contracts are enforced when someone has privity. Assignment: contract obligations can be assigned to a stranger. Represents a compromise between a simple contract and money. More valuable than a contract b/c it is negotiable. Bills of exchange act: increase economic efficiency by providing business people with set of rules regarding non-monetary payments. Three types of negotiable instruments: cheques, bill of exchange, and promissory notes.
