yaml2mindmap/data/nego.yaml

negotioable\ninstruments\nlaw:

    negotiability (section 1):

        childrenDirection:down
        W - written instrument signed by maker or drawer
        U - unconditional promise or order\n  to pay certain sum of money
        P - payable on demand or at a determinable future time
        O - rder or bearer
        N - when ADDRESS to a drawee\n NAMED or indicated with certainty

    features:

        negotiability:
            pass from hand to hand similar to money as to give the\nholder in due course right to hold free from defenses
        accumulation of contracts:
            as negotiated, as series of juridical ties arise

    promissory note (184):

        unconditional promise in writing
        made by one person to another
        signed by the maker
        engaging to pay on demand or at a fixed determinable future time
        a sum certain in money
        to bearer or order.
        where drawn to the maker's own name, not complete until endorsed

    bill of exchange (126):

        order in writing
        addressed to a another
        signed by the person giving it
        requiring person whom it is addressed
        to pay on demand or at a fixed determinable..
        a sum certain in money

    bill may be treated as note when:
        name:bill_as_note

        drawer, drawee same person
        fictitious drawee
        drawee no capacity to contract
        instrument is ambiguous

    stated installments:

        dates must be fixed or determinable
        amount stated

    payable on demand:

        when so expressed
        no time fixed
        when issued, accepted, indorsed when overdue\nas to such person so issuing...

    payable to bearer:

        when so expressed
        when payable to a person named OR BEARER
        fictitious or non-existing person
        does not purport to be the name of a person ie. CASH
        last indorsement is an indorsement in blank
        ... NOT negotiable when payable to a specified person

    negotiation:

        transfer such as to constitute the transferee a holder
        if bearer, by delivery:

            may however be indoresed specially
            bearer instrument, always bearer


    indoresment:

        qualified - without recourse
        restrictive:

            childrenDirection:down
            pay to x only - prohibits further negotiation
            pay to x for collection - constitutes indorsee as agent
            pay to x in trust of y - vests the title in trust


    holder:

        childrenDirection:down
        payee or indorsee in possession of the instrument
        holder in due course  has taken the instrument:

            childrenDirection:down
            C - complete and regular upon its face
            O - received before over due, no knowledge of previous dishonor
            V - acquired in good faith and for value:
                consideration sufficient to support a contract
            N - no notice of infirmity or defect of title:
                circumstances should have put him in inquiry

        holder not in due course:

            may sue thereon
            payment discharges
            but subject to personal defenses
            exception Section 58:
                a holder who is not a holder in due course but one\nderiving title from an HDC


    forgery:
        direction:left

        childrenDirection:down
        REAL defense
        forged signature is wholly inoperative:

            no right to retain
            no right to give discharge
            or enforce payment thereon

        but not the instrument itself
        and not the genuine signatures
        not liable:

            person,including indorsee\nwhose signature is forged
            persons prior him also not liable

        payment on such forged indorsement is not to the DRAWER's ORDER
        exception:

            parties who warrant; acceptors, indorsers
            precluded from settin up forgery:
                negligence

        if bearer instrument:

            persons who indorse are liable to those\nwho acquire title through their indorsement
            M - A specificially to B in blank to - C - D:

                childrenDirection:down
                D did not acquire title through A & B's indorsement
                ratified



    effects of (14 15 16):
        direction:left
        framed:true

        childrenDirection:down
        incomplete but delivered (SECTION 14):
            _class:style2

            childrenDirection:down
            wanting any material particular:
                person in possession has prima facie authority to complete
            a signature on a blank:
                delivered by a person making, prima facie authority to fill
            in both cases:

                childrenDirection:down
                instrument must be filled in accordance with authority given
                and within reasonable time

            hdc:

                childrenDirection:down
                may enforce as if filled strictly according to authorithy\nand within reasonable time
                DELIVERY is CONCLUSIVELY PRESUMED

            nhdc:
                may enforce against parties subsequent to completion

            personal defense

        non-delivery of incomplete instrument (SECTION 15):

            real defense
            incomplete and undelivered, not valid in the hands of ANY HOLDER:
                even against an HDC
            subsequent indorsers - liable for their warranty

            delivery is not conclusively presumed:
                only prima facie

        mechanically complete but undelivered (SECTION 16):

            undelivered instrument is incomplete
            in the hands of HDC, delivery is conclusively presumed

            as between immediate parties, and remote not HDC:
                delivery may be shown to be conditional, for special purpose, and not for transferring title
        summary of rules:
            1. delivery is essential to validity
            2. between immediate parties, delivery must be with intent to pass title
            3. incomplete and undelivery invalid as to maker
            4. as to 3, in the hands of HDC, prima facie delivery
            5. mechanically complete undelivered, prima facie delivery
            6. as to 5, in the hands of HDC, conclusively presumed


    material alterations:

        changes the effect of the instrument
        avoids the instrument except as to:

            those made,
            authorized,
            assented,
            subsequent indorsers


    parties and liabilities:
        direction:left
        framed:true

        childrenDirection:down
        accommodation:

            primarily liable
            signed the instrument
            as drawer, maker, acceptor, indorser
            withour receiving value
            for purpose of lending his name or credit

        maker:

            primarily liable
            1. engages to pay according to the tenor
            2. admits existence of payee and his capacity to indorse

        acceptor:

            primarily liable
            1. engages to pay according to tenor
            2. admits existence of drawer and authority
            3. admits existence of payee and capacity

        drawer:

            secondary
            1. admits existence of payee and his capacity to indorse
            2. engages that the instrument will be accepted
            3. engages that if dishonored and proper proceedings

        indorser:

            childrenDirection:down
            Every person negotiating an instrument by\ndelivery or by a qualified indorsement warrants (SECTION 65):

                childrenDirection:down
                (a) instrument is genuine and in all respects what it purports to be;
                (b) That he has a good title to it;
                (c) all prior parties had capacity to contract;
                (d) he has no knowledge of any fact which would\nimpair the validity of the instrument\nor render it valueless.

            Liability of general indorser (SECTION 66):

                childrenDirection:down
                (a)  A,B,C of 65
                (b) instrument is at the time of his indorsement valid and subsisting.
                1. he engages that on due presentment\nit shall be accepted or paid, or both\naccording to tenor
                2. and that if it be dishonored\nand the necessary proceedings on dishonor be duly taken\nhe will pay the amount thereof to the  holder\nor to any subsequent indorser who may be compelled to pay it.



    presentment:
        direction:left

        childrenDirection:down
        requisites:

            place
            hour
            to person primarily liable
            exhibit instrument, surrender if paid

        not necessary:

            drawer or indorser .. no right to expect ..
            dispenseed with


    notice to drawer:
        direction:left
        not necessary when:

            like when bill treated as note:
                name:like_bill_as_note
            or countermanded payment

    notice dispensed (114, 115):

        as to drawer:
            1. drawer, drawee same person
            2. fictitious
            3. drawer same person to whom ... presented for payment
            4. drawer no right to expect
            5. drawer countermanded payment

        as to indorser:
            1. drawee fictitious
            2. indorser same person to whom ... presented for payment
            3. when instrument is accepted for indorser's accommodation

    discharge:
        1. payment in due course by principal
        2. or by or accommodated
        3. intentional cancellation
        4. other act that discharges contract for payment of money
        5. principal debtor becomes holder in his own right

    discharge of secondarily liable:
        discharge of instrument
        cancellation
        discharge of prior party
        agreement to extend

    payment in due course:
        made at or after maturity
        to holder
        in good faith and without notice

    edges:
        bill_as_note, like_bill_as_note