LAW 603 Lecture Notes - Lecture 1: Promissory Note, Negotiable Instrument, Demand Draft
31 Mar 2016
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Document Summary
A negotiable instrument consists of a contract that contains an obligation to pay money. Is a species of contract that permits consumer and commercial transactions to proceed without having to provide immediate payment in cash. Conceptually, negotiable instruments lie somewhere between a contract and money. The negotiable instrument is itself an obligation by one party to another to pay money. You can sue on the negotiable instrument without having to sue on the underlying contract. Privity of contract: a contract typically binds only those who are parties to it; e. g. there has to be. Assignment: a contractual right transferred to another party is typically subject to any. The bills of exchange act is a federal statute that presides the rules for the issuance, transfer, and enforcement of negotiable instruments. The rules are mandatory, the parties cannot agree others wide, these are not default rules. Only applies to cheques, bills of exchange, and promissory notes.
