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12 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What are the requisites of negotiability? |
WUPOA |
WUPOA |
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What is the effect of a forged signature? SIgnature made without authority of the person whose signature it purports to be? Exception? [S23] |
Wholly inoperative - Signature NOT the INS No right to retain the instrument No right to give a discharge No right to enforce payment against any party EXC: Party is PRECLUDED from setting up forgery or want of authority - Estoppel, Ratification, Warranties of Acceptor (S62), Negligence is the proximate cause of the loss
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WRGE |
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What is the effect of a special indorsement of a bearer instrument? |
An bearer instrument is always a bearer instrument despite special indorsement. The special indorserc is liable as indorser only to holders who make title through his indorsement. |
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What is the effect of an incomplete negotiation? (Transfer for value without indorsement) |
Transferee acquires title of transferor. Transferee acquires the right to have the indorsement of the transfetor. |
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When there is incomplete negotiation, when does negotiation take effect for the purpos of determining WON a transferee is a HDC? |
From the time the indorsement is actually made |
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What is an allonge? |
Separate piece of paper attached to the INS where the indorsement is |
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What is negotiation by a prior party? What can the prior party do? |
INS negotiated BACK to a prior party (Bumalik sayo yung naindorse mo na dati - Reissue the INS/Negotiate - Strike out intervening indorsements (Lahat ng indorsement bago bumalik sayo) |
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What constitutes a holder in due course? |
Holder (Payee, indorsee, bearer) who ha taken the INS under the following conditions CBGN |
CBGN |
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What constitutes a holder in due course? |
Holder (Payee, indorsee, bearer) who ha taken the INS under the following conditions CBGN |
CBGN |
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What are the rights of a HDC? |
Free from defect of title of prior parties Free from defenses available to prior parties (Free from personal defenses but NOT real defenses) Enforce payment of the INS for the full amouny thereof against all parties liable thereon |
TDEfa |
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What is the "shelter principle"? When does it apply? What are its effects? |
Holder is not a HDC BUT the holder DERIVED title from a HDC Holder is not a party to any fraud or illegality affecting the INS Effect - Holder has all the rights of the former holder (HDC) against prior parties (parties prior to HDC) |
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What is an accomodation party? What is his liability? What is the effect if the holder knows that one is just an accomodation party? |
Signed the instrument as maker, drawer, acceptor, or indorser Without receiving value Purpose of lending his name to some other person Liable on the instrument to a holder for value AP is still liable |
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