LAW 603 Study Guide - Midterm Guide: Bearer Instrument, Negotiable Instrument, Promissory Note

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Stan Benda

Document Summary

Negotiable instruments consists of a contract that contains an obligation to pay money (a cheque) Differences between a contract and a negotiable instrument. Consideration: the requirement of consideration is more easily satisfied in the case of a cheque, consideration twice, once for the sale contract and second for the cheque. Privity: anyone who holds a cheque can sue on it. It can improve as it is passed from one person to the next. 3 types of negotiable instruments: cheques, bills of exchange, and promissory notes. Signed and written, parties identified, certain sum of money, time of payment, Cheques created when a person orders a bank to pay a specific amount of money to someone. Drawer person who creates the cheque. Drawee the bank that is ordered to pay the money. Payee person who is entitled to receive the money from the bank.