Review Mid Term Bus Law2 Inter

7/30/2019 Review Mid Term Bus Law2 Inter

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Review


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To Sahiba

Mary Sahiba

February 1st 2008

Good as aval to Sahiba

Jeffrey

To Susanna

Jason

Good as aval to

Jason

LarryFeb 14th 2008


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Part II. Answer the Following

Question (10 marks)


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The maturity date is at the end of

the fixed period after date. There are four types of maturity date

1. On a fixed day

Pay to order of Michael on July 15, 2004

2. At the end of the fixed period after date

Pay to order of Dan 10 days after the date appearing on

the bill

3. At the end of the fixed period after sightPay to order of Frank 1 month after you see the

bill

4. On demand or at sight

Pay to the order of Anna at sight


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Types of Acceptance

1. General Acceptance

An absolute acceptance precisely in

conformity with the tenor of the bill

2. Qualified Acceptance

An acceptance with Conditional orPartial


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Rights to the holderafter he agree with the qualified

acceptance

1. The holder may refuse and treat the bill as dishonor

bill by non-acceptance.

2. The holder may accept the bill. Incase of Conditional Qualified acceptance

- The holder need torequest an authorizedfrom the

drawer and indorser Incase of PartialQualified acceptance

- The holder need to inform the drawer and indorser


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According to the Thai Civil and Commercial

Code, the maker of a P/N is bound in the same

manner as an acceptor of a B/E and theacceptor of the bill is primarily liable to the

payment of the bill. Also, the maker is the

party who by himself promise to pay a sum of

money to the payee.


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Mark a special crossed cheque to any Bank. (1 mark)


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If you were a drawer of this cheque and you want the banker to pay

the sum of money only to your creditor ( John Smith) via his bank

account and you do not want John Smith to negotiate this cheque,

what kind of marks and words should you draw on this cheque? (2marks)


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The two parallel transverse lines with the

words "and company" on the face of a

Cheque means it is a general crossed cheque

and a payment of such cheque can only be

made to a banker.


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BillsBill of exchange

Order bill

Bearer bill

Promissory note

Order bill

Cheque

Order bill

Bearer bill


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Parties of bill - creditorHolder: a person who posses a bill as

Order bill: payee or indorsee

Bearer bill: bearer

Lawful Holder (by negotiate the order bill)


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Parties of bill - debtorsDrawer: a person who draws a B/E or

Cheque

Maker: a person who makes a P/N

Indorser/endorser: a person who negotiates

(transfer) the order bill by indorsement

Acceptor: drewee who accepts a bill.

Aval giver: any person who guarantees tothe parties (debtors) of a bill


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Classes of debtorsPrimary debtor: Acceptor, Maker

The holder exercise the right to claim without

protest.

Secondary debtor: Drawer, Indorser, Aval

giver

The holder exercise the right to recourse with

protest.


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Topics of Bill1. Issuing: paper + required items by law

2. Indorsement/ Endorsement

3. Rules of collecting4. Acceptance

5. Aval

6. Recourse


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Indorsement/ EndorsementOrder bill

Indore + deliver

Special or Blank indorsement

Condition on indorsement is deemed to beunwritten.

Partial indorsement is void.

Bearer billDeliver (if indorse the bill, he deemed to be the

aval giver of drawer)


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Rules of collectingB/E, P/Nmaturity date

Chequepayable on demand (from the

issuing date) Payable same town

Effect to the liabilities

of indorser and drawer

Payable elsewhere


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AcceptanceB/E, P/N

Cheque

Write & signs at front or signs at front

General or Qulified acceptance

condition or partial

In case of cheque, who presents the cheque for

acceptance The holder of drawer. When the drawee (the bank) becomes acceptor, he

is a primary debtor and cannot refuse the payment.


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Aval

Write + signs

Sings at front except the drawees signature.

Aval giver has to specify a party whom he

guarantees. If not, aval giver to the drawer.

Aval giver binds imself as a party whom he

guarantees.


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RecourseHolders right when the bill becomes

dishonor

B/E: protest is needed

Foreign P/N and cheque: protest are needed


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Crossed chequeGeneral crossing

with or without the words and company

Special crossing

A name of bank appears between the twoparallel transverse lines.


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Bill of ExchangeDate of Issue December 21st 2007

Place of Issue 34 soi Radprow 71,

Bangkok, Thailand

Drawee Rebecca

Pay to the order of Mary or bearer

Sum of Three hundred thousand baht 300,000.00

Date of Payment 7 days after acceptance /sight

Place of Payment 45/6 Sukumvit Rd. Bangkok Thailand.

Drawers signature LaurenJeffreyAccept to pay only

250,000 Rebecca


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On July 4th, 2007 Agnes drew the cheque at

Assumption University, Huamak campus. Agnes

ordered Bank of Ayudhya Huamak branch to payseven hundred and forty thousand Bath to

Anatolia, additionally Agnes also got the bank

acceptance before delivering such cheque to the

payee.

On July 17th, 2007 this cheque was transferred

by Anatolia to Charlie by special endorsement.

After that, with special endorsement togetherwith the phrase Non-negotiable, Charlie

transferred the bill to Danny on August 5th,

2007.


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On August 13th, 2007 Danny signed his name on

the back of the bill without specifying any nameand gave it to Edward. In addition, Peter gave aval

to the cheque as the guarantor of Danny.

On September 12th, 2007 Edward transferred the

bill to Finola without writing anything.

On September 29th, 2007 Finola inserted her

name on the blank space and made a special

endorsement for transferring the bill to Gorge.


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Finally, on October 6th, 2007 Gorge presented the

cheque for collecting but the Bank of Ayudhya

refuses to make the payment and stated that thereisnt enough money in the drawers account to

make the payment.

Which person is liable and is not liable to make

the payment to Gorge? Explain and provide legalregulations for supporting your idea.

How many types of debtor are there in this

Cheque? What are they? Classify which type ofdebtor is each character from the above situation.


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Negotiation of an order bill

Bills are negotiable instruments (they can

be transferred by the payee to any transfereehe orders)

If the words not negotiable or other

similar words are written on the bill = thebill cannot be transferred to another person.

Effect = if the payee transfers the bill to

other person, the latter would have no rightto enforce payment against the drawer.


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Pay Peter Smith only

Pay Peter Smith not negotiable

Non- transferable bill


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Which person is liable and is not liable to

make the payment to Gorge? Explain and

provide legal regulations for supportingyour idea.

Liable --- Agnes (drawer) P16

Bank Ayudaya (acceptor) --- principal/primary debtor (p32)

Anatolia, Edward, Danny (endorser), Peter

Aval giver to Danny (p16) (p22)Not liable --- Charlie (Restrictive

Endorsement) page 15


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Debtors in Bill Contract

How many types of debtor are there in this

Cheque? What are they? Classify which

type of debtor is each character from the

above situation.

Primary debtor --- Acceptor

Secondary debtor --- Drawer/ Endorser


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Review Mid Term Bus Law2 Inter