CHAPTER TEN. 52. Who is a holder in due course? Why is it important that one should be a holder in due course? 53. A makes a negotiable note to B for $100. B transfers it to C for $50. What are C's rights? 54. What constitutes one a holder in good faith? Suppose one purchases negotiable paper for a very much smaller sum than its face value. Does the fact that it is procurable at this large discount prevent the purchaser from being a holder in due course? 55. Does the fact that an instrument is overdue thereby deprive it of its negotiable character? Why is it important in buying paper to purchase it before it is overdue? When is demand paper overdue in the sense that it prevents a purchaser from being a holder in due course? 56. How can one purchase with notice of a defense good against the original party and still be a holder in due course? 57. Name the defenses which the party liable on an instrument could have made against a prior party but cannot be made against a holder in due course. 58. A made out his check to B and delivered it to B, B intending to bank it, indorsed it in blank and put it in his pocket from which it was stolen by C. C sold it to D for value. D did not know how C came by it. Assume that the check is negotiable as drawn. Can the lack of delivery to C and his theft of it be used against D by any party? 59. Name the defenses which can be set up against a holder in due course. CHAPTER ELEVEN. 60. What is the contract of the maker of a note? 61. What is the contract of a drawer of a bill or check? 62. What is the contract of the acceptor of a bill? 63. What is the contract of an unqualified indorser? Of one who transfers without indorsement? Of one who indorses 64. 65. He made a note to B A plead his minority. Who is an anomalous indorser? What is his contract? CHAPTER TWELVE. Why does the law require certain formal steps to be taken to charge parties secondarily liable on a negotiable instrument? 66. If one seeks to hold the maker of a note, must he show that on the date of its maturity he presented it to the maker and demanded its payment? 67. Suppose a note is payable at a certain street address in a certain city, but the holder does not have it there for payment on that day. What effect, if any, does this have on the maker's liability? 68. At what date and hour must negotiable paper be presented to the party liable thereon in order that rights against parties secondarily liable may be saved? What is the rule where paper is payable on demand? What are days of grace? Are such days allowed in most states? 69. Where paper falls due on Sunday or a legal holiday when must it be presented? What is the rule where it falls due on Saturday? 70. How is time computed where an instrument is payable so many days or a month after sight? 71. At what place must such paper be presented? То whom? 72. When may one hold an indorser or drawer notwithstanding he makes no presentment for payment to the maker or acceptor? 73. When is presentment for acceptance necessary to hold parties secondarily liable? May presentment for acceptance be made in other cases? Why? 74. A is holder of a bill drawn upon B payable ninety days after date. A presents it for acceptance which is refused. Must A present the bill for payment to such drawee when due in order to hold C, the drawer? 75. At what date and hour must presentment for acceptance be made? To whom must presentment be made? 76. Name the cases in which presentment for acceptance is excused or waived? 77. What is notice of dishonor? When and to whom must it be given? May it be given by mail? 78. What is protest? When must it be given? Who is authorized to make protest? 79. What must the protest contain? At what place must the protest be made? 80. What is meant by protest for better security? 81. Suppose you have a note with an indorser thereon. State all the steps necessary to hold such indorser. Suppose you have an inland bill. Name the steps necessary to hold the drawer and indorser. Suppose it is a foreign bill. Name the steps necessary to be taken. CHAPTER THIRTEEN. 82. What is meant by discharge of negotiable paper? State the causes which will operate as discharge. 83. Does tender of payment operate as discharge of the instrument or any party thereto. 84. What is the effect of material alteration? stitutes material alteration? What con INDEX. (References are to sections. In order to find any subject in A. Acceptance, see, also, "Presentment for acceptance." Alteration, as real defense, 80; as discharge, 114. Agent, how should sign, 35. Ambiguous instrument, treated as bill or note, 32. Amount, must be certain, 18. what, recoverable by holder, 65, 87. Anomalous indorser, 90. Ante-dating, 31. Assignment, of contracts in general, 1. how differs from negotiation, 1. Attorney's fee, may be provided for, 18. B. Bank drafts, defined, 7. negotiability of, 7. Bearer. See, also, "Words of Negotiability." Bills of Exchange, defined, 3. negotiability of, 3. foreign, 3. inland, 3. in sets, 3. Bills of Lading, defined, 9. negotiability of, 9. Blank Indorsement. See "Indorsement." |