tailieunhanh - Lecture Dynamic business law (3/e) - Chapter 28: Liability, defenses, and discharge

Lecture Dynamic business law (3/e) - Chapter 28: Liability, defenses, and discharge. After reading this chapter, you will be able to answer the following questions: What information is needed to determine signature liability? What is warranty liability? How does one avoid liability for negotiable instruments? | Chapter 28 Liability, Defenses, and Discharge Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 28: Liability, Defenses, and Discharge Signature Liability General Rule: Party liable for an instrument only if party has signed instrument 28- As a general rule, a party is liable for an instrument only if the party has signed the instrument. 28- Exhibit 28-1: Parties Signing Negotiable Instrument Maker Person promising to pay set sum to holder of promissory note/certificate of deposit Promises to pay money Acceptor Person (drawee) who accepts and signs draft to agree to pay draft when it is presented Pays money (or responsible for paying money) when it is requested Drawer Person ordering drawee to pay Orders someone (drawee) to pay Endorser Person who signs instrument to restrict payment of it, negotiate it, or incur liability Signs instrument at some point during process of negotiation Parties signing a negotiable instrument include a maker, an acceptor, a drawer, and an endorser. A “maker” is a person promising to pay a certain sum of money to the holder of a promissory note or certificate of deposit. An “acceptor” is a party (namely, a drawee) who accepts and signs a draft to agree to pay the draft when it is presented for payment. A “drawer” is a party ordering a drawee to pay a certain sum of money. An “endorser” is a person who signs an instrument, at some point in the process of negotiation, to restrict the payment of the instrument, negotiate it, or incur liability. 28- “Primary” Liability Versus “Secondary” Liability Primary Liability of Makers and Acceptors: Must pay stated amount on instrument when it is presented for payment Secondary (Conditional) Liability of Drawers and Endorsers: Must pay amount on instrument if following conditions met: Presentment (on party with primary liability) Dishonor (by party with primary . | Chapter 28 Liability, Defenses, and Discharge Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 28: Liability, Defenses, and Discharge Signature Liability General Rule: Party liable for an instrument only if party has signed instrument 28- As a general rule, a party is liable for an instrument only if the party has signed the instrument. 28- Exhibit 28-1: Parties Signing Negotiable Instrument Maker Person promising to pay set sum to holder of promissory note/certificate of deposit Promises to pay money Acceptor Person (drawee) who accepts and signs draft to agree to pay draft when it is presented Pays money (or responsible for paying money) when it is requested Drawer Person ordering drawee to pay Orders someone (drawee) to pay Endorser Person who signs instrument to restrict payment of it, negotiate it, or incur liability Signs instrument at some point during