R7 - Commercial Paper Flashcards
1
Q
What are the 6 elements of a negotiable instrument within Article 3?
A
WSU MOO Written Signed by the maker Unconditional Money only On demand/definite time Order or bearer
2
Q
What are the 10 real defenses against the maker/drawer having to pay anyone?
A
FAIDS Fraud in the execution Forgery Adjudicated insanity Alteration of the instrument Infancy Illegality Duress Discharge in bankruptcy Suretyship if status known Statue of limitations has passed
3
Q
Under the Negotiable Instruments Article of the UCC, which of the endorser’s liabilities are disclaimed by a “without recourse” endorsement?
A
Contract liability
4
Q
T/F: Under the Negotiable Instruments Article of the UCC, an instrument is not negotiable if it states that it is “subject to” or “contingent upon” another agreement
A
True
