LLpA 2015 :>Page 1 Bearer Instrument Forged Signature of DRAWERForged Signature of INDORSER BillNoteNoteBill HDC/NHDCHDC/NHDCHDC NHDC (issue becomes non-delivery, sec 16) HDC NHDC (issue becomes non-delivery, sec 16) Drawer/ maker Not liableraise the defense of forgery. not a party to the contract since it is his signature that is forged the instrument is wholly inoperative as to him Not liableraise the defense of forgery. not a party to the contract since it is his signature that is forged the instrument is wholly inoperative as to him Liableindorsement is not necessary to give effect to the instrument. Mere delivery is sufficient for it to be validly negotiated. NIL further provides that as for HDCs, there is a conclusive presumption of a valid delivery. Not liable raise the defense of non-delivery, or no authority to deliver, or the delivery was done for a conditional or special purpose Liableindorsement is not necessary to give effect to the instrument. Mere delivery is sufficient for it to be validly negotiated. NIL further provides that as for HDCs, there is a conclusive presumption of a valid delivery. Not liable raise the defense of non-delivery, or no authority to deliver, or the delivery was done for a conditional or special purpose Parties prior to the forgery N/AN/A Acceptor Liableby accepting the instrument, he warrants the genuineness of the signature of the drawer (precluded from raising the defense of forgery) N/AN/AN/A Liable the forged signature was not necessary for the acceptors obligation. By accepting the document, he has obliged himself to pay upon presentment of the instrument. Parties subsequent to the forgery LiableParties who validly negotiated the instrument are precluded from raising thedefense of forgery since they warrant that the instrument is genuine and in all respects as to what it purports to be (TN: Though signature of a drawer is necessary to make the instrument negotiable, if it is with the holder other than the maker, there is a presumption as to the validity of the delivery) LiableParties who validly negotiated the instrument are precluded from raising thedefense of forgery since they warrant that the instrument is genuine and in all respects as to what it purports to be Forger Liable1.by delivering the instrument, he warrants the instrument is genuine in all respect as to what it purports to be 2. as the perpetrator of fraud, he is to be held liable. We do not tolerate crime in commercial transactions LLpA 2015 :>Page 2 Order Instrument Forged Signature of Drawer/MakerForged Signature of Indorser NoteBillNoteBill HDC/NHDCHDC/NHDCHDC/NHDCHDC/NHDC Drawer or Maker Not liableraise the defense of forgery. not a party to the contract since it is his signature that is forged, the instrument is wholly inoperative as to him Not liable raise the defense of forgery. not a party to the contract since it is his signature that is forged, the instrument is wholly inoperative as to him Not liable raise the real defense of forgery. As to them, forged signature is wholly inoperative. Parties prior to the forgery N/AN/A AcceptorN/A Liableby accepting the instrument, he warrants the genuineness of the signature of the drawer (precluded from raising the defense of forgery) N/A Not liable1. Validly raise the defense of forgery, being a party prior to it. He only warrants the genuineness of the drawers signature 2. As an acceptor, he warrants that he will pay in accordance with the tenor of the instrument. Thus, he cant be made to pay if it is not in accordance with the order of the drawer. Parties subsequent to the forgery LiableParties who validly negotiated the instrument are precluded from raising thedefense of forgery since they warrant that the instrument is genuine and in all respects as to what it purports to be Forger Liableas the perpetrator of fraud, he is to be held liable. We do not tolerate crime in commercial transactions (TN: in order instruments, forger does not warrant the genuineness) Take Note: Forged signature of the acceptor will not be part of our exam. (Instrument remains inoperative unless accepted by the acceptor. Thus, if the signature of the acceptor is forged, the instrument is without effect. The holder thereof must have to present it to the acceptor (whose signature was forged), for it to produce effect. No one may be held liable because it was never presented to the person primarily liable.