Essentials of Business Law Chapter 23

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Author:
Drizzle
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276143
Filename:
Essentials of Business Law Chapter 23
Updated:
2014-06-04 23:48:53
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Business Law
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Chapter 23
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  1. Endorsement
    When the holder of commercial paper signs his or her name, with or without words, on the back of an instrument to transfer ownership to another.
  2. Endorser
    The person who signs his or her name to a negotiable instrument.
  3. Endorsee
    The person to whom a negotiable instrument is transferred.
  4. Blank endorsement
    An endorsement in which the name of the payee is written by the payee on the back of a negotiable instrument.
  5. Bearer instrument
    An instrument that is payable to anyone who is in possession of it.
  6. Special endorsement
    An endorsement in which the payee specifies the person to whom, or to whose order, it is to be paid.
  7. Restrictive endorsement
    An endorsement with a signature to which words have been added restricting further endorsement of the instrument.
  8. Qualified endorsement
    An endorsement in which the endorser avoids liability for payment even if the maker or drawer defaults on the instrument.
  9. Without recourse
    A phrase used to indicate a qualified endorsement.
  10. Holder in due course
    A holder who has taken a negotiable instrument in good faith and for value, before maturity, and without actual or constructive notice of any defects in the instrument.
  11. Personal defense
    A defense against payment of commercial paper that may be used against any party except a holder in due course.
  12. Real defense
    A defense against payment of commercial paper that claims the instrument was void from the beginning.
  13. Counterclaim
    When the maker of a note or other drawer or acceptor of a bill of exchange may deduct from the amount demanded by an immediate party any amounts owed him or her by the payee.
  14. Material alteration
    A deliberate change or alteration of an important element in a written contract that affects the rights or obligations of the parties.
  15. Presentment
    When the holder of a note tenders it to the maker and demands payment, or shows drafts to the drawer and requests its acceptance or payment, on  or after the maturity date at the place stated in the instrument.
  16. Dishonored
    When a negotiable instrument is not accepted when presented for acceptance, it is not paid when presented for payment for payment at maturity, presentment is excused or waived, or the instrument is past due and unpaid.

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