国际商法英文案例选编5, Negotiable Instrument Law.pptVIP

Chapter Five Negotiable Instrument Law There is no doubt that straightforward payment by cash is the earliest form of payment mechanism, and is still used most frequently. However, as substitutes for money, certain kinds of paper called commercial paper or negotiable instruments have been widely accepted and used in the business community over the course of centuries, and now have formed their own rules for creation, transfer, and rights of the parties for negotiable instruments. Section One What Is a Negotiable Instrument? 1. Definition “negotiable instrument”, signed by the maker or drawer, means an unconditional promise or order to pay a specified sum of money, is payable on demand or at a definite time and is payable to order or to bearer. 2. Parties to Instruments a) MAKER (or DRAWER) b) DRAWEE c) PAYEE d) HOLDER e) INDORSER f) INDORSEE g) BEARER h) ACCOMMODATION PARTY i) GUARANTOR 3. Negotiability Negotiability is a capability that the law gives to certain commercial paper. By virtue of this capability, the title in the paper may be transferred by indorsement and delivery. This transfer makes the transferee the holder of the instrument. Case Study Case: National Bank v. Univentures 1231 824 P2d 1377 (Alaska 1992) Case Study Questions: In National Bank v. Univentures case, what is the reason that the National Bank of Alaska claimed that it was a holder in due course? According to UCC, was state treasury warrant a negotiable instrument? Do you agree with the judgment of appellate court? Why? Case Study Case 5-1-1 Frank v. Hershey National Bank Section Two Transfer of Negotiable Instruments 1. Legal Effect of Transfer When a negotiable instrument is transferred, the transferee has the rights of the transferor. The transferee has the right to enforce the instrument as a contract, but the assignee has no more rights than the assignor. 2. Indorsements As above mentioned, an negotiable instrument is usually transferred through signatur