Summary commercial law review UP notes

COMMERCIAL LAW

,COMMERCIAL LAW

,COMMERCIAL LAW

, COMMERCIAL LAW

TABLE OF CONTENTS 3. Corporation as Accommodation Party
28
G. Negotiation ................................................. 29
LETTERS OF CREDIT .......................... 1 1. Distinguished from Assignment ........ 29
2. Modes of Negotiation......................... 29
I. LETTERS OF CREDIT AND TRUST 3. Kinds of Indorsement ........................ 31
RECEIPTS .......................................................... 2 H. Rights of the Holder .................................. 34
A. Definition and Nature of Letter of Credit . 2 1. Holder in Due Course (HDC) ........... 34
B. Parties to a Letter of Credit ......................... 4 2. Holder Not in Due Course ................ 37
C. Basic Principles of Letter of Credit............. 5 3. Defenses against the Holder .............. 37
1. Doctrine of Independence ................... 5 I. Liabilities of Parties .................................... 38
2. Fraud Exception Principle ................... 5 1. Maker ................................................... 38
3. Doctrine of Strict Compliance............. 5 2. Drawer ................................................. 38
D. Definition and Concept of a Trust Receipt 3. Acceptor .............................................. 38
Transaction [Sec. 4, PD 115] ....................... 8 4. Indorser................................................ 39
1. Loan/Security Feature .......................... 9 5. Warranties ............................................ 40
2. Ownership of the Goods, Documents J. Presentment for Payment .......................... 41
and Instruments Under a Trust Receipt 1. Necessity of Presentment for Payment
9 41
E. Rights of the Entruster .............................. 10 2. Parties to Whom Presentment for
F. Obligation and Liability of the Entrustee. 11 Payment Should Be Made .................. 41
1. Payment/Delivery of Proceeds of Sale 3. When the Requirement of Presentment
or Disposition of Goods, Documents or May Be Dispensed With ..................... 42
Instruments ......................................... 11 4. Dishonor by Non-Payment ............... 42
2. Return of Goods, Documents or K. Notice of Dishonor .................................... 43
Instruments in Case of Non-Sale ...... 11 1. Parties to be Notified ......................... 43
3. Risk of Loss of Goods, Documents or 2. Parties Who May Give Notice of
Instruments ......................................... 11 Dishonor.............................................. 44
G. Remedies Available .................................... 12 3. Effect of Notice .................................. 44
H. Warehouseman’s Lien ................................ 13 4. Form of Notice ................................... 44
NEGOTIABLE INSTRUMENTS LAW15 5. Waiver .................................................. 44
6. Dispensation with Notice................... 44
II. NEGOTIABLE INSTRUMENTS LAW .... 16 7. Effect of Failure to Give Notice ....... 45
A. Definition and Purpose.............................. 16 L. Discharge of Negotiable Instrument ........ 46
B. Forms and Interpretation .......................... 16 1. Discharge of Negotiable Instrument. 46
1. Requisites of Negotiability ................. 16 2. Discharge of Parties Secondarily Liable
2. Kinds of Negotiable Instruments ...... 21 48
C. Completion and Delivery........................... 22 3. Right of Party Who Discharged
1. Insertion of Date................................. 22 Instrument ........................................... 49
2. Incomplete but Delivered Instruments 4. Renunciation by Holder ..................... 49
22 M. Material Alteration...................................... 50
3. Incomplete and Undelivered 1. Concept................................................ 50
Instruments ......................................... 22 2. Effect of Material Alteration.............. 50
4. Complete but Undelivered Instruments N. Acceptance .................................................. 51
23 1. Definition ............................................ 51
D. Signature ...................................................... 24 2. Manner ................................................. 51
1. Signing in Trade Name ....................... 24 3. Time for Acceptance .......................... 51
2. Signature of Agent .............................. 24 4. Rules Governing Acceptance............. 51
3. Indorsement by Minor or Corporation O. Presentment for Acceptance ..................... 52
24 1. Time/Place/Manner of Presentment 53
4. Forgery ................................................. 24 2. Effect of Failure to Make Presentment
E. Consideration.............................................. 27 53
1. Who is a Holder for Value (HFV)? ... 27 3. Dishonor by Non-Acceptance........... 53
2. Burden of Proof – Presumption of P. Promissory Notes ....................................... 54
Consideration ...................................... 27 Q. Checks ......................................................... 55
3. Effect of Want of Consideration ....... 27 1. Definition ............................................ 55
F. Accommodation Party ............................... 28 2. Kinds .................................................... 55
1. Liability of an Accommodation Party 28 3. Presentment for Payment................... 55
2. Accommodation Party as Surety ....... 28