BLS 442 Lecture Notes - Lecture 4: Corpus Juris Secundum, American Jurisprudence, Secondary Liability

• School: Miami University
• Department: Business Legal Studies
• Course: BLS 442
• Professor: Paul Becker

Document Summary

Test of negotiability: what effect will the provision or wording have on the security of the holder i. e. his or her ability to obtain or receive payment. Holder: person who is in possession of an instrument . Has liabilities of an assignee; weak legal position (holder in due course is in strong legal position) Order or bearer = negotiable, without these words = non-negotiable. When sign a draft = assume secondary liability, ordering the drawee to pay the payee. Drawn from a bank (drawee; no liability) Once a time draft is accepted, drawee becomes the acceptor (primary liability) Acceleration by maker: instrument would say payable on or before [date] Acceleration by holder: demand maker pay in full sooner, if default. Default: missed payment (or violation of note, ex. car insurance required. Corporations have to sign by agents but do not have) Agents should sign: [principal name], [name], agent.