Professional Documents
Culture Documents
negotiation
1. Bearer instrument-delivery
2. Order instrument - delivery and indorsement
types of indorsement
Sec. 33. Kinds of indorsement. � An indorsement may be either special or in blank;
and it may also be either restrictive or qualified, or conditional.
Classification of indorsement.
(1) As to the methods of negotiation:
(a) special (Sec. 34.); or
(b) blank, (ibid.)
(2) As to the kind of title transferred: (a) restrictive; or
(b) non-restrictive. (Sec. 36.)
(3) As to scope of liability of indorser:
(a) qualified; or
(b) unqualified or general. (Sees. 38,66.)
(4) As to presence or absence of limitations:
(a) conditional; or
(b) unconditional. (Sec. 39.)
(5) The other kinds of indorsements are:
(a) joint (Sec. 41.);
(b) successive (see Sees. 50,68.);
(c) irregular or anomalous (Sec. 64.); and
(d) facultative, (see Sec. 111.)
fictious person
restrictive endorsement
Review
-unconditional promise or order to pay a sum certain in money
-certain in money (section 2)
-payable on demand(section 7) or fixed or determinable future time (section 4)
-the happening of an event does not cure the effect
-payable to order
-payable to bearer
-delivery and indorsement
-payment of a prior parties discharges the subsequent parties
-indorsers cannot avail of the defense of forgery
-forgery = will not affect the character of the negotiability of the instrument as
long as there is a signature then that satifies the requirement of negotiability
-forgery of endorsement = the party whose endorsement is forged and parties prior
to him including the maker cannot be held liable by the holder whether that holder
is a HDC or not
-material alteration
-forgery = refers to a signature that is not yours
Sec. 52. What constitutes a holder in due course. � A holder in due course is a
holder who has taken the instrument under the following conditions:
(a) That it is complete and regular upon its face
(b) That he became the holder of it before it was overdue, and without notice that
it had previously dishonoured, if such was the fact
(c) That he took in good faith and for value
(d) That at the time it was negotiated to him he had no notice of any infirmity in
the instrument or defect in the title of the person negotiating it.
A forged indorsement prevents any subsequent party from acquiring any right as
against any party whose name appears