Documente Academic
Documente Profesional
Documente Cultură
FUN-MNEMONICS
MEANING
Writing signed by the drawer/maker Uncoditional promise to pay a sum certain Due and demandable upon presentment/maturity Order or bearer (payable to) Named or indicated with certainty (drawer) Interest Demandable in case of default Installments specified Cost of collection in case of non-payment on due date Exchange of currency rate Collateral securities allowed Requirement by the holder to do something in lieu of payment Judgment (confusion of ) in case of non-payment Waives benefit of any law favoring the debtor Seal not placed Place specified Date not specified Currency not specified Value given not specified (consideration is presumed) Fixed Period even if Instrument is Undated Fixed Period even if Acceptance if Undated Incomplete instrument to be completed (prima facie authority of the holder/person in possession) Conversion to a negotiable instrument (signature on a blank instrument, prima facie authority) Enforced only against a party prior to completion (strictly in accordance with the authority given) Defense that it was not filled up in accordance with the authority given and within a reasonable time, NOT available) Instrument completed Without Authority but Not Delivered is a defense even against a Holder In Due Course Signature of parties Appear Before the Instruments Delivery Made by Parties making/drawing it IF CONDITIONAL-Specific purpose +Not for purpose of Transferring Instrument To the Holder in Due Course + All Parties Prior him Written promise to accept before it is drawn Intent to be bound as principal Forger liable for forgery Acceptance on a separate instrument Principal is always liable if agent signs in his behalf Disclosing the principal Authority was duly given Words indicating that he signed as an agent only Consideration(valuable) was given In respect to all Prior parties thereto Possession (actual holder of instrument)=holder for value Solidary co-debtor or surety Consideration is not material Illegality of cause not a defense (not entitled to recover Liability to anyone Corporations cannot be an accommodation party Reimbursement Revocation Contribution from other solidary accommodation parties Transfer from one person to another Payable to Order= Indorsement + Delivery Bearer= Delivery Issue- Delivery to a person who takes it as holder Negotiation-Indorsement to acquire better right Assignment- Requires delivery, may not involve indorsement
W-U-D-O-N
i-D-I-C-E
Additional Provisions Not Affecting Negotiability (Section 5: Additional Securities on the part of the debtor) Omissions, Seal, Particular Money (Section 6: Not affected by the fact that)
Ca-R-Ja-W (cardio)
S-Pe-D-C-V
FP-IU FP-AU Prima (I-C)-E-D (always completed in accordance with the authority given+within a reasonable time)
Incomplete Instrument Not Delivered (Instances When) (Section 15) Delivery; When Effectual or Conclusive (Section 16)
Escaping Liability as Agent (Section 20) Holder for Value (Section 26)
D-A-W
S-C-I-L-A-C
R-R-C
C-I-B-O-G (chibog)
S-E-R-F-D
A-Re-V-A
F-I-D-I-P
Sh-I-P-CoP-BoP
B-A-W-S
Ep-Ic Pay-T
Ep-Ic-Pud-AL-Pay-T
Liability of the Acceptor (Section 62) Warranty Where Negotiation by Delivery and so forth (Section 65)
Ep-Ic Pay-T GeGooCapIm not applicable to corporations when by delivery only=valid to immediate transferee Ge-Goo-Cap-Ativs +Pa-Pre
That the instrument is Complete and regular Infirmities of any sort, not known to him Became a holder before it was Overdue Good faith for value when it was taken Sue in his own name Enforce payment of the instrument Receive payment Free from any defenses Defect-free Attaches to the res Regardless of instruments merits and demerits Void contracts (absence of essential element) Applies to the person who made it Fraud (all related to it) Incapacity Duress Illegality Prescription ++(all other infirmities on its face) Against subsequent holder in privity Out of Conduct of Parties Between Original Parties Breach of good faith Blanks filled not in accord with the authority Acquisition by force, duress, fraud Want of authority Simple fraud Existence of Payee Indorsement Capacity Payment according to Tenor Existence of Payee Indorsement Capacity Payment Upon Dishonor Allowed to Limit or Negate his Liability Payment according to Tenor Existence of Payee Indorsement Capacity Payment according to Tenor Genuine in all respects Good title to the instrument Capacity to contract by all prior parties Impairment of instruments validity not know to him
B-Ad-Ic-Prior(D-V)-R
Genuine in all respects Good title to the instrument Capacity to contract by all prior parties At time of indorsement, it was valid and subsisting Paid upon presentment Payment to the principal debtor Payment by the accommodation party Intentional cancellation Simple contract discharge methods Debtor becomes holder after maturity Binding agreement to postpone holders right Any act that discharges the instrument Prior discharge Prior Valid payment Release by principal debtor Materially altered without assent of parties=instrument avoided EXCEPT against who made prior alteration and his subsequent indorsers BUT when Materially altered was possessed by HIDC= enforce according to tenor Date is changed Sum payable (principal or interest) Time or place of payment Relation of parties Currency to be tendered Adding a place of payment
D-S-T-R-C-App