...the document. More specifically, it is a document contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term can have different meanings, depending on what law is being applied and what country it is used in and what context it is used in. Examples of negotiable instruments include promissory notes, bills of exchange, banknotes, and cheques. Because money is promised to be paid, the instrument itself can be used by the holder in due course as a store of value. The instrument may be transferred to a third party; it is the holder of the instrument who will ultimately get paid by the payer on the instrument. Transfers can happen at less than the face value of the instrument and this is known as discounting; this may happen for example if there is doubt about the payer's ability to pay. Common prototypes of bills of exchanges and promissory notes originated in China. There, in the 8th century during the reign of the Tang Dynasty they used special instruments called feitsyan for the safe transfer of money over long distances.[1] Later such document for money transfer used by Arab merchants, who had used the prototypes of bills of exchange – suftadja and hawala in 10–13th centuries, then such prototypes had been used by Italian merchants in the 12th century. In Italy in the 13–15th centuries, bills of exchange and promissory notes obtain their main features, while further phases of...
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...UNITED HEALTHCARE PO BOX 740800 ATLANTA, GA-30374 To Whom It May Concern: We have not received a payment for services rendered to the above-referenced patient.. On 02/21/2013 our office was contacted by a third party carrier (Multiplan) requesting that we sign an agreement to reduce our rate from $43,124.00 to $489.00 stating that the rate was based on the primary surgeons’ reimbursement .Please understand that the primary surgeon has a contract with UHC, therefore to base our rate on a contract agreement between your office and another provider is unacceptable , furthermore after waiting for payment for over 7 months; There is no way that we will accept such reduction. At this time we are willing to reduce our fees to $30,186.80 and agree not to balance bill your member for the balance of $12,937.20 Please be advised that by the law this right is afforded to me pursuant to Texas law. See: § 1301.056. RESTRICTIONS ON PAYMENT AND REIMBURSEMENT. An insurer or third-party administrator may not reimburse a physician or other practitioner, institutional provider, or organization of physicians and health care providers on a discounted fee basis for covered services that are provided to an insured unless: (1) The insurer or third-party administrator has contracted with either: (a) The physician or other practitioner, institutional provider, or organization of physicians and health care providers; or (b) A preferred provider organization that has...
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...UNITED CITY MERCHANTS (INVESTMENTS) LTD. and GLASS FIBRES AND EQUIPMENTS LTD. v ROYAL BANK OF CANADA (INCORPORATED IN CANADA) AND VITROREFUERZOS S.A. (FIRST THIRD PARTY) AND BANCO CONTINENTAL S.A. (SECOND THIRD PARTY) [On appeal from UNITED CITY MERCHANTS (INVESTMENTS) LTD. v. ROYAL BANK OF CANADA] HOUSE OF LORDS [1983] AC 168, [1982] 2 All ER 720, [1982] 2 WLR 1039, [1982] 2 Lloyd's Rep 1 20 May 1982 LORD DIPLOCK. My Lords, this appeal, which is the culmination of protracted litigation, raises two distinct questions of law which it is convenient to deal with separately. The first, which I will call the documentary credit point, relates to the mutual rights and obligations of the confirming bank and the beneficiary under a documentary credit. It is of general importance to all those engaged in the conduct and financing of international trade for it challenges the basic principle of documentary credit operations that banks that are parties to them deal in documents only, not in the goods to which those documents purport to relate. The second question, which I will call the Bretton Woods point, is of less general importance. It turns upon the construction of the Bretton Woods Agreements Order in Council 1946 and its application to the particular fact of the instant case. All parties to the transaction of sale of goods and its financing which have given rise to the appeal were represented at the original hearings before Mocatta J. The sellers and their own merchant bankers to whom...
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...CHAPTER 16 T (T or F) After an assignment, only the assignee has a right to the obligor's performance. T (T or F) The person who makes an assignment is the assignor. F (T or F) A gratuitous assignment is always revocable. F (T or F) Consideration is required in order to have a valid assignment. T (T or F) The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the assignor but no new or additional rights. F (T or F) Arthur enters into a contract with Bob as a result of Bob's fraud in the inducement. Under the contract, Bob has the right to the payment of $100. Bob assigns the right to the $100 to Carl. Arthur may not assert the defense of fraud in the inducement to avoid paying Carl the $100. T (T or F) A gratuitous assignment is generally valid and enforceable. T (T or F) The delegation of a duty still leaves the delegator responsible for the performance of the duty. T (T or F) An incidental beneficiary has no right to enforce a contract. T (T or F) An intended donee beneficiary may enforce the contract only against the promisor. T (T or F) In some states, the vesting of a third party's rights occurs only when the third party learns of the contract and assents to it. T (T or F) Some states have statutes which prohibit an employee from assigning his future wages. F (T or F) A valid assignment requires that notice be given to the obligor. F (T...
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... 10/27/13 Loading... Branches of the Government and the UCC Flowchart The Flowchart of the 3 branches of the Government (State of Vermont, 2006):- Proposal Introduced as a Bill into the House of Representatives or Senate First Reading Referred to the Committee of the House Report of the Committee to the House Second Reading Debate and First Voting Third Reading and finale debate along with Voting Second Process by the other House Debate and Voting Passing the Bill Signing into Law by the President Implementation/Enforcement of the Bill by the Executive Interpretation and determination of Constitutionality of the Law Loading... The UCC The Uniform Commercial Code (UCC) is a set of laws and regulations said to harmonize the laws of the states of the US concerning commercial activities. The main intention is to harmonize and to ensure uniformity of the regulations for transactions that extend beyond one state. It ensures substantive uniformity and at the same time permits local flexibilities that may be required in order to modify the UCC. The UCC usually involves movable property and attempt to modernize the contract law between parties existing in 2 different states (National American University, 2009). UCC Clauses and Respective Government Two issues of the UCC concerning the...
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...“a negotiable instrument” means a promissory note, bills of exchange or chequ payable either to order or to bearer”. According to Judge Willis: “A negotiable instrument is one the property in which is acquired by every person who takes it bonafide and for value, not withstanding any defect of title in the person from whom he took it.” It is a document contemplated by a contract, which (1) warrants the payment of money, the promise of or order for conveyance of which is unconditional; (2) specifies or describes the payee, who is designated on and memorialized by the instrument; and (3) is capable of change through transfer by valid negotiation of the instrument. As payment of money is promised subsequently, the instrument itself can be used by the holder in due course as a store of value; although, instruments can be transferred for amounts in contractual exchange that are less than the instrument’s face value (known as “discounting”). Types of Negotiable instruments a) Promissory note: A written, dated and signed two-party instrument containing an unconditional promise by the maker to pay a definite sum of money to a payee on demand or at specified future date. b) Bill of exchange: Bills of exchange are financial documents that require the individual or business that is addressed in the document to pay a specified amount of money on a date that is cited within the text of the document. c) Cheque: A bill of exchange drawn on a bank by the holder of a current...
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...question1 What are the remedies available under the Law of Contract? Remedy is where the inured party enforce their rights or get a reward for a loss. It also means to achieve justice where legal rights are involved. There are many types of remedies and some of them may be ordered by court, granted by judgement, by agreement between two parties and operation of law. The remedies depend on the nature of the breach. The remedies available under the Law Of Contract are Rescission, Restitution, Damages, Specific Performance, Injunction,Mareva Injunction, and Quantum Meruit. Rescission has been defined as the cancellation of contract between parties. It enables the innocent party to cancel off the contract when there is any misinterpretation by the other party. Misinterpretation is as the defence if the innocent party is sued for damages or specific performance by the other party. Under the Sale of Goods, the innocent party has the rights to cancel off the contract when there is a breach of implied condition as to title, correspondence with description, merchantable quality, fitness for purpose and sale by sample corresponding to those implied in contract of sale. Restitution is sometimes referred as quasi-contract. Quasi-contract is a contract created by courts. Quasi contract is actually not a legal contract but it is actually a legal substitute which is formed to impose equity between the two parties. It does not rely on the plaintiff, person who brings a case against another...
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...National Law School of India University Law of Contracts II Transfer of rights under the Sale of Goods Act Submitted by: Shivendu Pandey Id No.- 1928 Date of Submission: 13th April, 2011. Table of Contents Introduction 3 Transfer of rights under the Sale of Goods Acts 4 What is a Sale? 4 Essentials of a contract of sale 4 Definition of property 4 Transfer of property as between seller and buyer 5 Passing of Property or Transfer of Ownership 5 Property cannot pass until the goods are ascertainable 6 Distinction between transfer of property and delivery of goods 7 Property passes when intended to pass 8 Ascertained goods 10 Passing of property in specific goods 10 Ownership in unascertained goods 11 Transfer of Title by Person not the Owner 12 Doctrine of Nemo dot quod non habet 12 Exception to the General Rule 12 Conclusion 14 Introduction Mercantile laws are laws that govern trade and commerce. These laws essentially deal with the rights and obligations of the parties to a mercantile agreement. In India, there are various mercantile laws like the Contracts Act, the Partnership Act dealing with particular mercantile relations. The Sale of Goods Act is one such act which deals with the contract of sale. Originally, the law relating to sale of goods or movables was contained in chapter VII of the Indian Contract Act, 1872. The Indian Contracts Act embodied the simple and elementary rules relating to the sale of goods. It was...
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...of context,- (1) "buyer" means a person who buys or agrees to buy goods; (2) "delivery" means voluntary transfer of possession from one person to another; (3) goods are said to be in a "delivered state" when they are in such state that the buyer would under the contract be bound to take delivery of them; (4) "document of title to goods" includes bill of lading dock-warrant, warehouse keeper's certificate, wharfingers' certificate, railway receipt, 4[multimodal transport document,] warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods or authorising or purporting to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented; (5) "fault" means wrongful act or default; (6) "future goods" means goods to be manufactured or produced or acquired by the seller after making of the contract of sale; (7) "goods" means every kind of moveable property other than actionable claims and money; and includes stock and shares, growing crops, grass, and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale; (8) A person is said to be "insolvent" who has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of insolvency or not; (9) "mercantile agent" means a mercantile agent having...
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...Dr. S.S. Kundu Vetter: Dr. B.S. Bodla NEGOTIABLE INSTRUMENTS ACT, 1881 STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 Objectives Introduction Meaning of Negotiable Instruments Characteristics of a negotiable instrument Presumptions as to negotiable instrument Types of negotiable Instrument 1.5.1 Promissory notes 1.5.2 Bill of exchange 1.5.3 Cheques 1.5.4 Hundis 1.6 Parties to negotiable instruments 1.6.1 Parties to Bill of Exchange 1.6.2 Parties to a Promissory Note 1.6.3 Parties to a Cheque 1.7 1.8 Negotiation 1.7.1 Modes of negotiation Assignment 1.8.1 Negotiation and Assignment Distinguished 1.8.2 Importance of delivery in negotiation 1.9 Endorsement 1.10 Instruments without Consideration 1.11 Holder in Due Course 1.12 Dishonour of a Negotiable instrument 1.13 Noting and protesting 1.14 Summary 1.15 Keywords 1.16 Self Assessment Questions 1.17 References/Suggested readings 1.0 OBJECTIVES After reading this lesson, you should be able to• • • • Understand meaning, essential characteristics and types of negotiable instruments; Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; Explain capacity and liability parties to a negotiable instruments; and Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. 1.1 INTRODUCTION The Negotiable Instruments Act was enacted, in India, in 1881. Prior to its enactment, the provision...
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...The objective of learning this topic is to cover up the main types of contracts commonly entered into by everybody. We as a consumer should know the important of learning basic principles relating in the Sale of Goods Act in Malaysia because only law can make us satisfied on sale or buy goods. The Sale of Goods legislation is aimed to offer protection to the consumer and the main purpose of a contract involving goods is the transfer of ownership. Sale of Goods Act 1957 were applied in Malaysia except in the states of Penang, Malacca, Sabah and Sarawak. Section 1 of the Sale of Goods Act 1957 provides that the Act shall have effect within the Malay States only. The position in Penang, Malacca, Sabah and Sarawak is governed by the English Sale of Goods Act 1983 . The Sale of Goods Act is complimentary to Contract Act. Basic provisions of Contract Act apply to contract of Sale of Goods also. Basic requirements of contract i.e. offer and acceptance, legally enforceable agreement, mutual consent, parties competent to contract, free consent, lawful object, consideration etc. apply to contract of Sale of Goods also. TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory SearchBrowseDonateSaved Papers Home Page » Other Topics Sale of Goods In: Other Topics Sale of Goods National Law School of India University Law of Contracts II Transfer of rights under the Sale of Goods Act Submitted by: Shivendu Pandey Id No...
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...What are the essentials for a Valid Contract? Describe them in details. Essential of a Valid Contract All contracts are agreement but all agreements need not be contracts. The agreements that create legal obligation only are contracts. This validity of an enforced able agreement depends upon whether the agreement satisfies the essential requirements laid down in the acts. Section 10 lays down that ‘all the agreement are contracts if they are made by the free consent of the parties competent to contract for a lawful object and are not hereby expressly declared to the void’. The following are the essentials: a) Agreement: An agreement which is preliminary to every contract is the outcome of offer and acceptance. An offer to do or not to do a particular act is made by one party and is accepted by the other to whom the offer is made the we say that there is meeting of the mind of the parties. Such a position is know as consensus ad idem. b) Free consent: The parties should agree upon the same thing in the same sense and their consent should be free from all sorts of pressure. In other words it should not be caused by coercion, undue influence, misrepresentation, fraud or mistake. c) Contractual capacity: The parties entering into an agreement must have legal competence. In other word they must have attained the age of majority should be of sound mind and should be disqualified under the law of the land. A contract entered into between the parties having no legal capacity is nullity...
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...Author: Dr. S.S. Kundu Vetter: Dr. B.S. Bodla NEGOTIABLE INSTRUMENTS ACT, 1881 STRUCTURE 1.0 1.1 1.2 1.3 1.4 1.5 Objectives Introduction Meaning of Negotiable Instruments Characteristics of a negotiable instrument Presumptions as to negotiable instrument Types of negotiable Instrument 1.5.1 Promissory notes 1.5.2 Bill of exchange 1.5.3 Cheques 1.5.4 Hundis 1.6 Parties to negotiable instruments 1.6.1 Parties to Bill of Exchange 1.6.2 Parties to a Promissory Note 1.6.3 Parties to a Cheque 1.7 1.8 Negotiation 1.7.1 Modes of negotiation Assignment 1.8.1 Negotiation and Assignment Distinguished 1.8.2 Importance of delivery in negotiation 1.9 Endorsement 1.10 Instruments without Consideration 1.11 Holder in Due Course 1.12 Dishonour of a Negotiable instrument 1.13 Noting and protesting 1.14 Summary 1.15 Keywords 1.16 Self Assessment Questions 1.17 References/Suggested readings 1.0 OBJECTIVES After reading this lesson, you should be able to• • • • Understand meaning, essential characteristics and types of negotiable instruments; Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque; Explain capacity and liability parties to a negotiable instruments; and Understand various provisions of negotiable instrument Act, 1881 regarding negotiation, assignment, endorsement, acceptance, etc. of negotiable instruments. 1.1 INTRODUCTION The Negotiable Instruments Act was enacted, in India, in 1881. Prior to its enactment, the provision of the...
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...Abstract Consideration is the price that the promisor asks in exchange for their promise, that is, the price of a given promise. Consideration is not a significant part of a contract in a number of jurisdictions. Once parties have reached a binding agreement, that becomes sufficient. Nevertheless, the common law requires that for agreement to be binding, the person to whom a promise is made (promisee) must offer consideration (maybe in monetary terms) for the promise given to him (Lorenzen, 1918, p.28). Hence, most gratuitous promises are never enforced because of a few exceptions. There are different types of consideration and they include: Executory consideration Executory consideration is a type of consideration where the promise has not yet completed the requirements of the consideration. Therefore, executory consideration will exist in cases where the promisor’s promise is made in return for a counter-promise from the plaintiff. For instance, A makes a promise of delivering some products to B at a future date and B promises to make payment for the goods once he receives the shipment. B can sue A for breach of contract if A fails to deliver the goods (Carter et al., 1996, p. 312). Executed consideration Consideration is termed as executed when the consideration is issued at the time the contract is made. Therefore, an executed consideration will only come into existence when the promisor’s promise is matched by a performance of an act. For instance, Philip can offer to...
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...early part of the fourtheenth century. The word 'hundi', a generic term used to denote instruments of exchange in vernacular is derived from the Sanskrit root 'hund' meaning 'to collect' and well expresses the purpose to which instruments were utilised in their origin. With the advent of British rule in India commercial activities increased to a great extent. The growing demands for money could not be met be mere supply of coins; and the instrument of credit took the function of money which they represented. Before the enactment of the Negotiable Instrument Act, 1881, the law of negotiable instruments as prevalent in England was applied by the Courts in India when any question relating to such instruments arose between Europeans. When then parties were Hindu or Mohammedans, their personal law was held to apply. Though neither the law books of Hindu nor those of Mohammedans contain any reference to negotiable instruments as such, the customs prevailing among the merchants of the respective community were recognised by the courts and applied to the transactions among them. During the course of time there had developed in the country a strong body of usage relating to “hundis”, which even the Legislature could not without hardship to Indian bankers and merchants ignore. In fact, the Legislature felt the strength of such local usages and though fit to exempt them from the operation of the Act with a proviso that such usage may be excluded altogether by appropriate words. In the absence...
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