LAW 603- Final Exam Guide - Comprehensive Notes for the exam ( 38 pages long!)

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Gil Lan

Document Summary

Negotiable instrument: consists of a contract that contains an obligation to pay money free of the equities. Co(cid:374)side(cid:396)atio(cid:374): (cid:272)he(cid:395)ue"s (cid:272)o(cid:374)side(cid:396)atio(cid:374) (cid:272)a(cid:374) consist of a promise to perform an obligation that is already owed to the same party. Privity: anyone that holds a cheque can sue on it. Assignment: person who receives contractual right through assignment takes it subject to the equities. 5 requirements for the bills of exchange act to apply: signed and written, parties identified, certain sum of money, time of payment, unconditional obligation. Acceleration clause: states that the entire amount of the promise becomes due if a single instalment is not paid on time. Negotiable instrument: payable to bearer if any person who holds it is entitled to receive payment. Bearer instrument: can be negotiated by simple delivery or physical transfer of the document, arises when: The note is payable to a fictitious person or to a non-person.