Chances are that you are using a variety of negotiable instruments in your everyday life, perhaps without realizing the special qualities that have led to their widespread use in commerce and the rules that govern them. If you have a job, your employer probably pays you by check, and you likely have a checking account that you use to make purchases and pay your bills. If you have accumulated some savings, you may have invested them in a certificate of deposit at a bank. And, if you have borrowed money, you very likely were asked to sign a promissory note acknowledging the debt and committing to repay it on specified terms. This chapter introduces the law of negotiable instruments, including:
The special qualities and benefits of negotiable instruments.
The basic types of commercial paper and their defining characteristics.
The formal requirements that must be met for instruments such as checks, notes, and certificates of deposit to qualify as negotiable instruments.
What happens if you write or receive a check in which there is a conflict between the amount set forth in figures and the amount set out in words.
Whether it was ethical for the purchaser of two engines to deliberately place two different amounts on a check (one figure using a check-writing machine and the other by writing numerals in handwriting) that was sent in payment for the engines.
