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    RFBT

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    lena cpa
    The document defines key terms related to negotiable instruments including fraud in inducement, holder in due course, payee, indorser, drawer, drawee, check, and negotiability. Specifically, it explains that a holder in due course can enforce payment of an instrument free from defects and personal defenses, a payee is the party an instrument is made payable to, a drawer creates a bill of exchange, and a check is a type of bill of exchange drawn on a bank and payable on demand.

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    RFBT

    Uploaded by

    lena cpa
    402 views1 page
    The document defines key terms related to negotiable instruments including fraud in inducement, holder in due course, payee, indorser, drawer, drawee, check, and negotiability. Specifically, it explains that a holder in due course can enforce payment of an instrument free from defects and personal defenses, a payee is the party an instrument is made payable to, a drawer creates a bill of exchange, and a check is a type of bill of exchange drawn on a bank and payable on demand.

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    rfbt

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    The document defines key terms related to negotiable instruments including fraud in inducement, holder in due course, payee, indorser, drawer, drawee, check, and negotiability. Specifically, it explains that a holder in due course can enforce payment of an instrument free from defects and personal defenses, a payee is the party an instrument is made payable to, a drawer creates a bill of exchange, and a check is a type of bill of exchange drawn on a bank and payable on demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    402 views1 page

    RFBT

    Uploaded by

    lena cpa
    The document defines key terms related to negotiable instruments including fraud in inducement, holder in due course, payee, indorser, drawer, drawee, check, and negotiability. Specifically, it explains that a holder in due course can enforce payment of an instrument free from defects and personal defenses, a payee is the party an instrument is made payable to, a drawer creates a bill of exchange, and a check is a type of bill of exchange drawn on a bank and payable on demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    26.

    Fraud in inducement – A personal defense where a party is deceived into signing for a larger amount
    than he intended, or on different terms in a negotiable instrument.

    27. Holder in due course – A holder who takes the instrument free from defect of title of prior parties
    and free from personal defenses available to prior parties among themselves.

    28. Payee – the party whom a bill of exchange is drawn payable or in whose favor a promissory note is
    made payable.

    29. Indorser - A person who transfers a negotiable instrument by means of an indorsement

    30. Drawer – The person who executes the written order to pay a bill of exchange

    31. Drawee – The person who is given the command by the drawer to pay the payee.

    32. Check – A bill of exchange drawn on a bank which is payable on demad.

    33. Negotiability – The attribute that allows a negotiable instrument to be passed from one person to
    another so as to give a holder in due course the right to hold the instrument free from defect of title of
    prior parties and free from defenses available to prior parties among themselves, and to enforce the full
    amount of the instrument against all parties liable thereon.

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