LAW 610 Chapter Notes - Chapter 29: Bearer Instrument, Negotiable Instrument, Secondary Liability
Document Summary
Chapter 29 transfer of negotiable instruments and warranties of parties. Explain the difference between negotiation of order paper and negotiation of bearer paper. List the types of indorsements and describe their uses. Determine the legal effect of forged and unauthorized indorsements. Be familiar with the forged payee impostor exceptions. List the indorser"s warranties and describe their significance. Negotiable instruments are transferred by a process called negotiation. When a contract is assigned, the transferee has the rights of the transferor and can enforce the contract. Holder in due course a holder who has given value, taken in good faith without notice of dishonor, defenses or that instrument is overdue, and who is afforded special rights or status. Under ucc 3, negotiation means a transfer of possession of an instrument by a person other than the issuer to a person who thereby becomes a holder.
