LAW 603 Lecture Notes - Lecture 5: Negotiable Instrument, Cheque, Promissory Note
9 Jul 2017
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Negotiable instrument: consists of a contract that contains an obligation to pay money. Represents a compromise between a simple contract and money and can easily be transferred to another party. It is a contract that eventually results in the payment of money. Consideration cheque is enforceable only if it is. Definition supported by consideration (something of value given in exchange). Someone who didn"t participate in the creation of the agreement, cannot sue on it. Contractual obligations can be assigned to a stranger. Consideration normally cannot consist of a promise to perform an obligation that is already owed to the same party. Only enforced by someone with privity anyone who holds a cheque can. Assignee cannot be in a better position than the assignor sue on it. The assignee can collect the full payment even if there is a breach of contract with the original assignor and the customer. #337 the bills of exchange act in 1890 (canada)
