LAW 603 Lecture Notes - Negotiable Instrument, Promissory Note, Demand Draft
3 Mar 2014
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Is dated in the future: only allows the person receiveing payment to wait till date cannot be paid beofre. Staledated cheque: the payee does not seek payment within a reasonable time, banks do not honor cheques that is presented more than 6 months after date that appears on it. Overdrawn cheque: when the bank account does not hold enough money to satisfy it completely, non suffient funds are fined to account. Is created when one person orders another person to pay a specific amount to a. 3rd person: bill of exchange may be drawn on a bank or anyone else, figure 14. 2 bill exchange 329, acceptance- occurs when the drawee promises to pay a bill. Is like a cheque not supportable without consideration: bill of xchange may be payable on demand in which case it is called a demand draft, bills mostly used for international trade between large business.
