LAW 603 Midterm: Chapter 14 notes.docx

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Nick Iannazzo

Document Summary

U can pay by: (1) cash, (2) credit cards, (3) debit cards or (4) negotiable instruments. Negotiable instruments (ni): a contract containing an obligation to pay money. * wrt = with reason to: consideration. Normally consideration cannot be a promise to perform an obligation already owed to the same party (ex. Buyer promises to seller to get a product. Only the parties are bound to the contract, therefore the buyer and the seller can sue. Sales contract) can also be consideration for a ni. If the cheque is not honoured by the bank, seller can sue buyer for payment on either transaction: privity. Normally, a contract can be enforced only by someone with privity. However, with a cheque, anyone that holds it can sue on it (u don"t need privity) Generally, c contract can be assigned to a tp, but subject to the equities. But, a ni can improve as it is passed on to another person.