ADMS 2610 Lecture Notes - Lecture 9: Undue Influence, Negotiable Instrument, Cheque
2 May 2017
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Document Summary
An instrument in writing that, when transferred in good faith and for value without notice of defects, passes a good title to the instrument to the transferee. Play a significant role in commercial transactions. Written promises or order to pay sums of money to the holders of the instruments: cheques, promissory notes, bills of exchange. Developed from practices of merchants in their dealings with each other. First used in middle ages by merchants. For bills of exchange, cheques, and promissory notes. Reduces risk of having to transport money. Transferee may have greater rights than transferor. A promise in writing, signed by the maker, to pay a sum certain in money to the person named therein, or bearer, at some fixed or determinable future time, or on demand. A bill of exchange that is drawn on a banking institution and payable on demand.
