Académique Documents
Professionnel Documents
Culture Documents
Law on
Negotiable
Instruments
COURSE OUTLINE
1.1 Negotiability of instrument
1.2 Functions and kinds of negotiable
instruments
1.3 Construction of ambiguous instrument
1.4 Parties and their liabilities
1.5 Indorsements
1.6 Accommodation party
1.7 Consideration
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COURSE OUTLINE
1.7 Consideration
1.8 Manner and consequence of transfer of
instruments
1.9 Dishonored instruments and its effects (including
clearing house rules and BP 22)
1.10 Requisites of holder in due course
1.11 Defense of parties
1.12 Forgery and its effects
1.13 Discharge of negotiable instruments and the
parties secondarily liable
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Characteristics of negotiable
Instruments
Promissory Note :
Sorsogon
Signature of Mr Y
8
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Bill of Exchange
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jeanromblon,cpa_demo_journalizing
Essential characteristics of a
Promissory Note
15
Cheque
A cheque is a bill of exchange drawn on
a specified banker and expressed to be
payable otherwise than on demand.
The maker of a bill of exchange or Cheque
is called the Drawer"; the person thereby
directed to pay is called the "Drawee".
16
Essential characteristics of a
Cheque
17
18
Negotiation
It is a process of transferring the
ownership, right, title, interest of a person
in a negotiable instrument to another
person so as to give a good title to the
transferee and make a transferee a holder of
such instrument.
19
Essentials of negotiation
21
Modes of negotiation:
Endorsement
Literal meaning of the term endorsement is
writing on an instrument.
Endorser - The person who signs on the back
or on the face of the instrument or on the
slip is an endorser.
Endorsee - The person to whom the
instrument is endorsed is called the
endorsee.
23
Types of Endorsement
24
25
Dishonour of negotiable
instrument
26
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