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    The Indorser in A Negotiable Instruments

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    BrianCarpio
    The document discusses parties in a negotiation and their roles and responsibilities. It defines maker, drawer, issuer, and indorser for promissory notes and bills of exchange. The maker/drawer is responsible for completing and delivering the instrument and can indorse it. The indorser delivers the instrument to subsequent parties and indorses it. The liabilities of the maker/drawer/issuer depend on the type of indorsement, from full liability for special or blank indorsements to limited liability for qualified indorsements without recourse.

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    © All Rights Reserved
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    The Indorser in A Negotiable Instruments

    Uploaded by

    BrianCarpio
    80 views2 pages
    The document discusses parties in a negotiation and their roles and responsibilities. It defines maker, drawer, issuer, and indorser for promissory notes and bills of exchange. The maker/drawer is responsible for completing and delivering the instrument and can indorse it. The indorser delivers the instrument to subsequent parties and indorses it. The liabilities of the maker/drawer/issuer depend on the type of indorsement, from full liability for special or blank indorsements to limited liability for qualified indorsements without recourse.

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    The indorser in a negotiable instruments

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    The document discusses parties in a negotiation and their roles and responsibilities. It defines maker, drawer, issuer, and indorser for promissory notes and bills of exchange. The maker/drawer is responsible for completing and delivering the instrument and can indorse it. The indorser delivers the instrument to subsequent parties and indorses it. The liabilities of the maker/drawer/issuer depend on the type of indorsement, from full liability for special or blank indorsements to limited liability for qualified indorsements without recourse.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    80 views2 pages

    The Indorser in A Negotiable Instruments

    Uploaded by

    BrianCarpio
    The document discusses parties in a negotiation and their roles and responsibilities. It defines maker, drawer, issuer, and indorser for promissory notes and bills of exchange. The maker/drawer is responsible for completing and delivering the instrument and can indorse it. The indorser delivers the instrument to subsequent parties and indorses it. The liabilities of the maker/drawer/issuer depend on the type of indorsement, from full liability for special or blank indorsements to limited liability for qualified indorsements without recourse.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Parties in a negotiation

    The maker or drawer, the issuer and indorser

    Definition:

    a) Maker refers to the person issuing a promissory note


    b) Drawer refers to the person issuing a bill of exchange
    c) Issuer refers to the maker or drawer
    d) Indorser refers to the payee or indorsee who has signed the instrument and delivered it
    to another person.

    Roles and responsibilities in negotiation

    Maker/drawer Indorser
    a) Ensure that the document is completed a) Delivery the instrument if bearer
    and delivered instrument to the indorsee
    b) Indorse and delivery the instrument to
    the indorsee
     Indorse the whole of instrument
     Determine the mode of indorsement if special, blank, conditional, restrictive or qualified
     Put the words “without recourse or words of similar import” if the indorsement is qualified

    Liabilities of maker/drawer/issuer in negotiation

    Type of indorsement Liabilities


    In a Special or blank indorsement  Full liabilities to the amount of the note
    or bill.
     Acts as guarantor fort the payment of the
    amount due
     Warrants for the breach of liabilities
    In a Qualified indorsement (without recourse)  Does not guaranty payment by the
    primary party.
     Liable if dishonoured by non-acceptance
    or non-payment due to: a) Forgery, b)
    lack of good tile to the instrument
    indorsed, c) lack of capacity to contract
    on the part of the prior parties and d) the
    fact that the instrument was valueless or
    not valid at the time of the indorsement
    which fact was known to him
     Not liable if the reason of non-payment is
    References:
    The Negotiable Instruments Law
    De Leon, H.S., De Leon, H.M., & Philippines (2016) The Philippine Negotiable Instruments law annotated. Publish and distributed by Rex
    Bookstore.
    the insolvency of the person primarily
    liable
    In a restrictive indorsement  The indorsee has the right against the
    indorsee to a) receive payment, b) bring
    any action thereon that the indorser
    could bring, and c) transfer his rights as
    such indorsee, where from the
    indorsement authorizes him to do so.
    In a conditional indorsement  The party required to pay may disregard
    the condition and proceed to pay

    References:
    The Negotiable Instruments Law
    De Leon, H.S., De Leon, H.M., & Philippines (2016) The Philippine Negotiable Instruments law annotated. Publish and distributed by Rex
    Bookstore.

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