LAW 603 Lecture Notes - Lecture 7: Bearer Instrument, Daily Bugle, Negotiable Instrument
11 Dec 2016
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Types of negotiable instrument: cheques, bills of exchange, promissory notes. Cash (bills and coins) is currency it has value in itself, but does not simply represent a right to acquire something else that is valuable. Cash can be dangerous usually impossible to recover if lost or stolen. An honest purchaser might acquire title to stolen money. Definition: a contract that contains an obligation to pay money. It consists of a contract that contains an obligation to pay money. For example: you buy a car from a dealership. A contract is created you are required to pay the price, and the dealer is required to transfer the car to you. The dealer wants something more than your simple promise under the sale agreement. You therefore write out a cheque for 000. You have promised that 000 will be paid to whoever presents that piece of paper to your bank. Hrithik buys a car and pays with a cheque.
