Commercial Paper

Question 1

Commercial Paper Approach

Answer 1

1. Identify type of paper (representation of money).
2. Identify parties.
3. Determine if instrument is negotiable.
4. Determine if instrument was properly negotiated.
5. Determine if transferee is a holder in due course.
6. Determine plaintiff’s cause(s) of action such as contract, warranty, tort, or not properly payable.
7. Determine defendant’s defenses.
8. If defendant is held liable, may defendant pass liability on to another party?

Question 2

Types of Instruments Involved?

Answer 2

Note and Draft (Incl. Check)