Intro

Question 1

Who is the drawer?

Answer 1

• > Person who has prepared the bill

- > Bottom right of the bill

Question 2

Who is the drawee?

Answer 2

• > Person who is ordered to pay

- > Bottom left

Question 3

Who is the payee?

Answer 3

Person who will be paid

Question 4

What is meant by a BoE being unconditional?

Answer 4

Payment is never subject to conditions

Question 5

2 types of bill

Answer 5

1) Bearer bill

2) Order bill

Question 6

What is a bearer bill?

Answer 6

The person in possession of it is entitled to payment, even if they stole it (bank must not know it is stolen)

Question 7

What is an order bill?

Answer 7

Order to pay whoever is named on the bill, if it is someone else then there must be:

• > Possession
• > Signed endorsement
• > Delivery

Question 8

Legislation relevant to BoE?

Answer 8

The Bills of Exchange Act 1882

Question 9

What are the 2 ways to endorse an order bill?

Answer 9

1) Special

2) Blank

Question 10

Which section BEA 1882 states 2 ways to endorse order bills?

Answer 10

s34

Question 11

Who is liable on a bill?

Answer 11

The signatories

Question 12

Must the drawee be named?

Answer 12

Yes

-> s6 BEA 1882

Question 13

Drawee must sign?

Answer 13

Yes

-> s23 BEA 1882

Question 14

Are forged signatures valid?

Answer 14

No

-> s24 BEA 1882

Question 15

s24 BEA 1882?

Answer 15

Forged signatures invalid

Question 16

s6 BEA 1882?

Answer 16

Drawee must be named

Question 17

s23 BEA 1882?

Answer 17

Drawee must sign the bill

Question 18

When can a BoE be presented?

Answer 18

• > Reasonable hour AND
• > On a business day AND
• > Before the bill is due

Question 19

Statute for when a bill can be presented?

Answer 19

s41 BEA 1882

Question 20

How do BoE encapsulate fundamental principles of commercial law?

Answer 20

• > Created by custom

- > Got round previous illegality of assigning debts to make commerce easer

Question 21

How is a BoE autonomous?

Answer 21

It is separate from whatever original contract existed, not reliant on any other transaction

Question 22

Huge advantages of BoE?

Answer 22

• > Can be assigned to others
• > Autonomous
• > Gives absolute certainty of payment - unconditional

Question 23

What consideration must be given for a BoE?

Answer 23

• > Anything sufficient to support a simple contract

- > s27 BEA

Question 24

s27 BEA 1882

Answer 24

Consideration must be sufficient as to support a simple contract, some value must be given

Question 25

What about consideration if BoE is a gift?

Answer 25

• > Because no value given, the donee of the gift cannot sue the donor
• > Due to the negotiable nature of BoE, the person who received it as a gift can sue anyone before them in the chain of negotiation
• > This is because value has been given at some point
• > Only person they can’t sue is that who gave them the gift