BLAW 4203 Chapter Notes - Chapter 26: Bearer Instrument, Negotiable Instrument, Security Interest
Document Summary
Promise to pay-- notes, cds. maker, payee. (completely different concept----order instrument(include draft and notes that : need endorse and delivery, has name of payee: pay to the order of smith. Bearer instrument: pay to the order of cash/bearerneed only deliver for negotiate) Demand or time instruments, some can be both. 15-8 payable on demand is ni: check : drawn on bank, order to pay(not promise), need be payable on demand. Sight draft: ni to be negotiable, only drawer"s signature is required. Not drawee"s: an instrument will be negotiable only if it contains an order or promise to pay. 25 there are several legally significant differences between a negotiable instrument and a contract right, and the transfer of each. Neither can be transferred without a signed writing or by a transfer of possession. A negotiable instrument is deemed prima facie to have been issued for consideration, but a contract is not.
