Intro Flashcards
Who is the drawer?
- > Person who has prepared the bill
- > Bottom right of the bill
Who is the drawee?
- > Person who is ordered to pay
- > Bottom left
Who is the payee?
Person who will be paid
What is meant by a BoE being unconditional?
Payment is never subject to conditions
2 types of bill
1) Bearer bill
2) Order bill
What is a bearer bill?
The person in possession of it is entitled to payment, even if they stole it (bank must not know it is stolen)
What is an order bill?
Order to pay whoever is named on the bill, if it is someone else then there must be:
- > Possession
- > Signed endorsement
- > Delivery
Legislation relevant to BoE?
The Bills of Exchange Act 1882
What are the 2 ways to endorse an order bill?
1) Special
2) Blank
Which section BEA 1882 states 2 ways to endorse order bills?
s34
Who is liable on a bill?
The signatories
Must the drawee be named?
Yes
-> s6 BEA 1882
Drawee must sign?
Yes
-> s23 BEA 1882
Are forged signatures valid?
No
-> s24 BEA 1882
s24 BEA 1882?
Forged signatures invalid
s6 BEA 1882?
Drawee must be named
s23 BEA 1882?
Drawee must sign the bill
When can a BoE be presented?
- > Reasonable hour AND
- > On a business day AND
- > Before the bill is due
Statute for when a bill can be presented?
s41 BEA 1882
How do BoE encapsulate fundamental principles of commercial law?
- > Created by custom
- > Got round previous illegality of assigning debts to make commerce easer
How is a BoE autonomous?
It is separate from whatever original contract existed, not reliant on any other transaction
Huge advantages of BoE?
- > Can be assigned to others
- > Autonomous
- > Gives absolute certainty of payment - unconditional
What consideration must be given for a BoE?
- > Anything sufficient to support a simple contract
- > s27 BEA
s27 BEA 1882
Consideration must be sufficient as to support a simple contract, some value must be given
