MKT 100 Study Guide - No Authority, Nonperson, Bearer Instrument

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Jennifer Fraser

Document Summary

Unlike before, the same promise to perform an obligation that is already owed can be used twice. The: british parliament introduced sale of goods act (1893) aim was to ensure that the economy ran smoothly, british parliament enacted the bills of exchange act (1882) adopted rules that judges had developed over several centuries. Legislature"s intention was to increase economic efficiency by providing business to people with a comprehensive set of rules regarding non-monetary payments. Types of negotiable instruments: five requirements that must be met before the act will apply, signed and written, parties identified, certain sum of money, time of payment, unconditional obligation. A bank will not normally accept a countermand unless the drawer gives that order in person and unless the cheque in question is fully described. A bank normally owes an obligation only to its own customer, but once it is certified, it is also owed an obligation to payee.