Themis Essay 815 Flashcards
To be negotiable under the Uniform Commercial Code as adopted by Virginia, an instrument must be:
(i) a writing;
(ii) signed by the maker;
(iii) containing an unconditional promise or order;
(iv) to pay a fixed amount of money;
(v) to an order or bearer;
(vi) payable on demand or at a definite time; and
(vii) without stating any additional undertaking or instruction.
An instrument is payable to order if it
identifies a person or order.
To negotiate an order instrument, the holder must
transfer possession of the instrument and endorse it.
A special endorsement names
an identified person as endorsee in addition to the endorsement.
An endorsee must ________ the endorsement for it to be further negotiated.
sign
Restrictive words such as “only” are generally ineffective as
a limitation on the subsequent transfer of an instrument.
Unless explicitly stated, an instrument does not automatically convey an
interest payment.
If an instrument specifies only that interest will be paid, then the rate is
the established judgment rate in the jurisdiction of the place of payment of the instrument at the time interest first accrues.
When conflicting or contradictory terms exist within an instrument, the following ordering rules are applied sequentially to determine which term will take precedence:
(i) handwritten terms;
(ii) typewritten terms;
(iii) words; then
(iv) numbers.
A winning party is not entitled to attorney’s fees in an action involving an instrument, unless
an instrument specifically provides for it.
Virginia does not have an applicable statute under Article 3 of the UCC in order for a party to
collect attorney’s fees in an action involving an instrument.
