Commercial Paper

Question 1

Basic Idea of Commercial Paper

Answer 1

1. Person with the instrument wants to get paid.
2. Person obligated on instrument does not want to pay.
3. Person who paid the instrument now wants to recover the money from the person paid or someone else.

Question 2

Approach

Answer 2

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 Clourse
6. Determine plaintiff’s causes of faction 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 3

Note

Answer 3

Promise to pay

Promise to pay money

Two Party instrument

Question 4

Parties

Answer 4

1. Maker

2. Payee

Question 5

Maker

Answer 5

asd

Question 6

Payee

Answer 6

asdf

Question 7

Certificate of Deposit

Answer 7

note issued by a financial instrument

Question 8

Financial Institution

Answer 8

asdf