What is the required form of negotiable instruments?

Sec.1 of the negotiable instruments law provides that negotiable

instruments must conform to the following requirement:
1. It must be in writing and signed by the maker (promissory note) or
drawer (bill of exchange)
2. It must contain an unconditional promise (promisory note)
(unconditional order if bill of exchange) or order to pay a sum certain in
money
3. it must be payable on demand, or at a fixed or determinable future time
(section 3)
4. it must be payable to order or to berer
5. where the instrument is addressed to drawee, he must be named or
otherwise indicated therein with reasonable certainty (applicable only to
bill of exchange)
If the signature of a person placed in a negotiable instrument does not
clearly identify what capacity he has signed for, what is the presumption?
He is presumed an indorser (sec 17)
True or False A check payable to a specified person is a negotiable
instrument
It is a false statement because a negotiable instrument ceases to be
negotiable if the indorsement prohibits further negotiation of the
instrument.
What is a promissory note
-

It is a promise to pay a sum of money

Parties maker and payee

What is a bill of exchange

-

It is an order made by one person to another to pay money to a

third person
An order bill drawn on a bank and payable on demand is called a
check (parties: drawer, drawee, payee)

When is there a sum certain?

-

It when a holder can determine from the instrument the amount he

is entitled to receive at maturity

What is delivery
Delivery is a transfer of possession, either actual or constructive, from one
person to another with the intention to transfer title thereto
Fill in the blanks
Possession of a party is ______________ presumption of delivery.
Possession of a holder of due course is a _____________________ of a valid
and intentional
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Generally, no person is liable on instrument whose signature does not
appear there on except
1. Where a person signs in a trade or assumed name
2. If signed by a duly authorized agent on his behalf
3 Forger will be liable even if his signature does not appear
4. Acceptor makes his acceptance of a bill on a separate paper
5. Person makes a written promise to accept the bill before it is drawn
Requisites before an agent may escape personal liability for a signed
negotiable instrument:
1. If he is duly authorized
2. He ass words to his signature indicating that he signs as an agent for or
in behalf of a principal or in a representative capacity
3. He discloses his principal
If he doesnt do this he is bound by the negotiable instrument unless he
can prove that the payee knew he was only doing so in a representative
capacity
What is consideration?
It means an inducement to the contract, that is the cause, the price, or
impelling influence which induces a party to enter into a contract.