Chapter 16 - The nature of negotiable instruments. After completing this chapter, students will be able to: State the purpose of a negotiable instrument, explain those negotiable instruments that contain a promise to pay money, explain those negotiable instruments that contain an order to pay money, differentiate among the different types of checks and money orders,...
Trang 1Business Law with UCC
Applications,13e
The Nature of Negotiable
Instruments Chapter 16
Trang 2Learning Objectives
1 State the purpose of a negotiable instrument
2 Explain those negotiable instruments that
contain a promise to pay money
3 Explain those negotiable instruments that
contain an order to pay money
4 Differentiate among the different types of
checks and money orders
5 Identify the requirements of a negotiable
instrument
Trang 3Learning Objectives (cont.)
6 Explain an assignment and a negotiation of an
instrument
7 Name and describe four kinds of indorsements
8 Identify the implied warranties related to
indorsements
9 Explain the contract that is made when people
indorse negotiable instruments
10.Describe the legal effect of a forged
indorsement
Trang 4The Nature of Negotiable
Instruments
• The Essentials of Negotiable
Instruments
– Promise and Order Instruments
– Parties to Negotiable Instruments
– Requirements of Negotiable Instruments
Trang 5The Nature of Negotiable
Instruments
• Promise and Order Instruments
– Promise Instruments: Notes
– Promise Instruments: Certificates of Deposit
– Order Instruments: Drafts
– Order Instruments: Checks
Trang 6The Nature of Negotiable
Instruments
• Parties to Negotiable Instruments
– Requirements of Negotiable Instruments
Trang 7The Nature of Negotiable
Instruments
• Requirements of Negotiable Instruments
– Written Instrument
– Signature of Maker or Drawer
– Unconditional Promise or Order to Pay
– Fixed Amount of Money
– Payable on Demand or at a Definite Time
– Payable to Order or to Bearer
– Dates and Controlling Words
Trang 8The Nature of Negotiable
Instruments
• Transferring Negotiable Instruments
– The Concept of Negotiability
– Transferring Instruments
– Negotiation by Indorsement
– Obligations of Indorsers
– Multiple Payees, Missing and Forged
Indorsements
Trang 9The Nature of Negotiable
Instruments
• Negotiation by Indorsement
– Blank Indorsements
– Special Indorsements
– Restrictive Indorsements
– Qualified Indorsements
Trang 10The Nature of Negotiable
Instruments
• Obligations of Indorsers
– Warranties of Indorsers
– Contract of Indorsers
Trang 11The Nature of Negotiable
Instruments
• Unauthorized or Forged Indorsements
– Exceptions