LAW 603 Midterm: LAW603 Exam 2
20 Apr 2017
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Ppsa exemptions: commercial landlord deemed trust pg 8. Negotiable instrument: contract of agreement/obligation to pay money: at least 2 contracts are always present. Example: go into a dealership to buy a car. Pay with cheque, sign contract, hand over cheque, take the car and leave. Require: consideration: something of value must be given in exchange for it, privity: anyone who holds a cheque can sue on it, assignment: the assignee cannot be in a better position than the assignor. Bills of exchange act: created at a time where cash was king (act late 1800s) come up with an easier way to finance large transactions. The legislature intention was to increase economic efficiency by providing business people with a comprehensive set of rules regarding non-monetary payment. 5 required elements of negotiable instruments to qualify under bills of exchange. Act: signed and written, parties identified, specific amount of money, time of payment, unconditional obligation.
