...Promissory Estoppel Brian McDonald and Harry Ledman are co-workers at Food mart. They both love model trains and have them as a hobby. While having a casual discussion about the model trains, Brian tells Harry that after he retires he wants to sell his trains and travel. Brian mentions to Harry, “You are the only person I plan to offer my trains to, because I know that you would take care of them.” This statement set the stage for a verbal contract with a pending date of sale, the date of sale being Brian’s retirement. Harry made plans to purchase the train station by saving money, borrowing money and adding on to his home to prepare for the train set. Brian was aware of all the plans that Harry was making. Upon Brian’s retirement he told the train set to his neighbor, James. Harry sued Brian, claiming breach of contract, or in the alternative, for promissory estoppel. Harry’s claims of promissory estoppel are based on the grounds that a promisor (Brian) made a gratuitous promise (to sell his train set) to a promise (Harry). Harry relied on the promise and made purchases to the fact. Brian was aware of all the purchases that Harry was making and he never said anything to Harry to suggest that he had changed his mind. Harry will ask the judge for compensation for all he spent preparing for the train set, the cost of building a 2,000 sq. ft. addition to his home and the loan from aunt Ida the 2,000 square foot room that Harry built for the model train collection and the...
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...Week 5 -Six Assessed Questions 1. Facts: An English professor puts a comment on a student’s composition which says, “Can’t you write at all? You are writing at a third grade level and will never be able to graduate from this university!” The student is extremely upset and sues the professor for intentional infliction of emotional distress. Issue: Is the English Professor guilty of intentional inflicting emotional distress on the student? Rule: Emotional Distress is a negative emotional reaction. It could be fear, anger, or anxiety caused by another person. Application: The English Professor did write some very ugly comments on the student's paper, but it would be very hard for the student to prove this caused Emotional Distress in court. Also, Emotional Distress is usually used as a defense, not as a way to sue. Had the student been sexually harassed or something of that nature the student would have a much better case. Also, most states do not even consider Emotional Distress in court. Conclusion: The student would not win. At the most the college may terminated the professor. 2. Facts: Dorothy Yu, an employee of Northwest Pipeline Corporation, was found to have in her possession a confidential personnel document that she was not authorized to possess. She admitted possession and identified Enser, who worked in the records department, as the source of the document. Both Yu and Enser were terminated for violating Northwest's confidentiality policy...
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...Porter v Wertz (Powers) Citation. 22 Ill.53 N.Y.2d 696, 439 N.Y.S.2d 105, 421 N.E.2d 500 (1981) Brief Fact Summary. Plaintiff- Appellant allowed Von Maker (who posed as Wertz) borrow a painting to decide if Von Maker wished to buy the painting. Von Maker eventually sold the painting to a third party who resold the painting to a person in Venezuela, and Plaintiff- Appellant seeks to recover the painting. Synopsis of Rule of Law. Equitable estoppel as a defense against the rightful owner is not available to Defendants unless each element of the defense is proven, specifically, that the rightful owner gave indicia of ownership to another who had the apparent right to sell and that the buyer exercised good faith in the purchase. Facts. Plaintiff- Appellant (Porter) owned a painting by Utrillo named “Chateau de Lion-sur-Mer,” which he loaned to one who was actually named Von Maker but was posing as Wertz. The loan of the painting was made along with a purchase of another painting, which Wertz agreed to pay for in a deposit and a series of notes. When the first note was not honored, Plaintiff- Appellant sought to retrieve the Utrillo from Von Maker (posing as Wertz). Plaintiff- Appellant could not get in touch with Von Maker, but hired an investigator and discovered that he had not been dealing with Wertz, but had been dealing with Von Maker, who had a long history of fraudulent dealings. Thereafter, Plaintiff- Appellant made a contract with Von Maker (represented by counsel)...
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...Res Judicata RES JUDICATA- the Latin term for "a matter [already] judged", and may refer to two things: in both civil law and common law legal systems, a case in which there has been a final judgment and is no longer subject to appeal.[1]; and the term is also used to refer to the legal doctrine meant to bar (or preclude) continued litigation of such cases between the same parties, which is different between the two legal systems. In this latter usage, the term is synonymous with"preclusion". Elements of Res Judicata 1. The former judgment must be final 2. Judgment must be on the merits of the case 3. The former decision is rendered by the court having jurisdiction over the subject. 4. There is similar identity of parties, subject matter and cause of action for both cases. Cause of action - defined as "an act or omission of second party in violation of the legal right or rights of the other, and its essential elements are legal right of the plaintiff, correlative obligation of the defendant, and act or omission of the defendant in violation of said legal right." TEST FOR APPLICATION OF RES JUDICATA In the application of the doctrine of res judicata, if it is doubtful whether a second action is for the same cause of action as the first, the test generally applied is to consider the Identity of facts essential to their maintenance, or whether the same evidence would sustain both. If the same facts or evidence would sustain both, the two actions...
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...THE NEGOTIABLE INSTRUMENTS ACT AND THE NEGOTIABLE INSTRUMENTS (AMENDMENT AND MISCELLANEOUS PROVISIONS) ACT, 2002 Negotiable instruments are of great importance in the business world and by extension in banking. They are instruments for making payments and discharging business obligations What is a Negotiable Instrument? The Negotiable Instruments Act does not define a negotiable instrument but merely states, “ a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or bearer.” (Section 13). This section does not prohibit any other instrument that satisfies the essential features of portability. Justice K. C. Willis defines these as, “ one the property in which is acquired by anyone who takes it bonafide and for value notwithstanding any defect in title in the person from whom he took it.” Thomas defines it in his book “Commerce, Its theory and Practice “A negotiable instrument is one which is, by a legally recognized custom of trade or by law, transferable by delivery in such circumstances that (a) the holder of it for the time being may sue on it in his own name and (b) the property in it passes, free from equities, to a bona-fide transferee for value, notwithstanding any defect in the title of the transferor.” It : (1) entitles a person to a sum of money (2) is transferable (by customs of trade) by delivery, like cash, or by Endorsement and delivery and delivery, and (3) ...
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...Teamwork Unit 6 Criminal Procedure and Constitutional Protections CCL 2134-9 Instructor: Timothy R. Walsh Everest University Group C: Team C Timothy Moseley (Team Leader) Brandi Hendricks Victor Munoz Amanda Mroz 2 July 2009 Decide if Double Jeopardy, and Collateral Estoppel, applies in any of the four situations and explain why or why not. Double jeopardy is defined as “a provision of the Fifth Amendment of the United States Constitution that has been construed to prohibit an individual from being tried twice for the same crime prosecuted by the same sovereign jurisdiction unless the defendant waives the constitutional protection by appealing a conviction or otherwise” (Town, 2004, p. 584). Collateral Estoppel is defined as “where a fact necessary to the prosecution of a second but different case against the defendant has been clearly found in the defendant’s favor at the first trial, the defendant cannot be forced to relitigate the same fact a second time at a second trial involving the same sovereign” (Town, 2004, p. 583). 1) Where defendant fled by vehicle from California into Arizona, and both states tried defendant for drunk driving. “Double Jeopardy applies in this situation. The defendant is being charged with the same crime twice” (Hendricks, 2009). “This would be Double Jeopardy because he has been charged with the same crime twice” (Munoz, 2009). “The defendant broke the law in to different states so I don’t think that is would be a double...
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...Question 1: Explain the term negotiable instruments and briefly state its types. Negotiable instrument is a document that constitutes an obligation to pay a sum of money at a future date or on demand. According to Justice Willis, “a negotiable instrument is one, the property in which is acquired by anyone who takes it bona fide and for value notwithstanding any defects of the title in the person from whom he took it”. Any document is capable of being called a “negotiable instrument” if the following conditions are met: 1. The holder of the instrument may sue in his/her own name. 2. Title to the instrument must pass on delivery, or on delivery and endorsement. 3. A "holder in due course" takes the instrument free from the defects in title of his/her predecessors. Essential Features of a Negotiable Instrument: 1. A Negotiable Instrument is a written instrument 2. Signed by the maker or drawer of the instrument A signature may be any symbol made by the maker or drawer with the present intention to be a signature. 3. It must contain an unconditional promise or order to pay A mere acknowledgment of a debt is not sufficient without evidence of an affirmative undertaking on the part of the debtor to repay the debt. 4. An exact sum of money (with or without interest in a specified amount or at a specified rate) must be stated. Fixed amount means an amount that can be determined from the face of the instrument. Payable in money means the medium of exchange authorized or...
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...1. Scope It is now fairly well-settled that no person can sue on a negotiable instrument unless he is named therein as the payee or unless he becomes entitled to it as indorsee or becomes the bearer of an instrument payable to bearer. In the Full Bench case reported in Subba Narayana Vathiyar v. Ramaswami Aiyar,1 it has been held that in a suit on a negotiable instrument by the payee or indorsee, it is not open to the defendant to plead that the plaintiff is a mere benamidar not entitled to payment with a view to show that the note has been discharged by payment to real owner. Again in the Full Bench decision of the Patna High Court in Bacha Prasad v. Janaki,2 it has been held that a person who is not a holder of a negotiable instrument cannot maintain a suit for recovery of money due under it even though holder is admittedly the benamidar and is impleaded in the suit. In the said decision, it has also been held that "a beneficiary cannot be called a holder of the instrument and payment to him cannot discharge the maker thereof unless the case falls under section 82(c) of the Act". So also, it has been held in the decision reported in Subharaya v. Abiram,3 that a beneficiary does not become a holder of the instrument even upon getting a declaration that he is the beneficial owner and the payee is only a benamidar. In this connection it has to be noted that Allahabad and Rajasthan High Courts have taken a slightly different view and held that in certain cases a beneficiary may...
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...Subject: Principles of Insurance and Banking Course Code: FM-306 Lesson: 1 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...
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...Subject: Principles of Insurance and Banking Course Code: FM-306 Lesson: 1 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...
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...I. INTRODUCTION: TYPES OF NEGOTIABLE INSTRUMENTS Money: UCC defines money to mean a “medium of exchange currently authorized or adopted by a domestic or foreign government” 1-201(24). * * The Functions of Money (1) Medium of Exchange Cures two problems with bartering: Double coincidence of wants, e.g. you have a horse you want to trade, and you want a cow—now you need someone who has a cow, and wants a horse. Depreciable commodities (2) Store of Value Money may be used as a store of value. Not all stores of value are money. (3) Unit of Account Unit in which prices are stated and accounts maintained. (4) Statement of Deferred Payment Measure of what must be paid in long-term transactions like loans and annuities. What is Payment Systems? Concerned with the law governing the payment component of commercial transactions. This is the law applicable not to money itself, but to the various substitutes for money. Payments law is not derived from principles of “higher law.” Instead, it is instrumental—designed to facilitate commercial transactions. One way to view payment law is as creating a set of default rules. These rules are designed to establish what the parties would otherwise do for themselves, if they were able to bargain about what the rules would be. Presumably, people would like to reduce transaction costs. So how do we determine what the parties would have chosen? We engage in a “thought experiment” and imagine what kind of bargain parties...
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...Problem 2-2A Preparing and posting journal entries; preparing a trial balance C4 C5 A1 P1 P2 Shelton Engineering completed the following transactions in the month of June. a. Shania Shelton, the owner, invested $105,000 cash, office equipment with a value of $6,000, and $45,000 of drafting equipment to launch the business. b. Purchased land worth $54,000 for an office by paying $5,400 cash and signing a long-term note payable for $48,600. c. Purchased a portable building with $75,000 cash and moved it onto the land acquired in b. d. Paid $6,000 cash for the premium on an 18-month insurance policy. e. Completed and delivered a set of plans for a client and collected $5,700 cash. f. Purchased $22,500 of additional drafting equipment by paying $10,500 cash and signing a longterm note payable for $12,000. g. Completed $12,000 of engineering services for a client. This amount is to be received in 30 days. h. Purchased $2,250 of additional office equipment on credit. i. Completed engineering services for $18,000 on credit. j. Received a bill for rent of equipment that was used on a recently completed job. The $1,200 rent must be paid within 30 days. k. Collected $7,200 cash in partial payment from the client described in transaction g. l. Paid $1,500 cash for wages to a drafting assistant. m. Paid $2,250 cash to settle the account payable created in transaction h. n. Paid $675 cash for minor repairs to the drafting equipment. o. Shelton withdrew $9,360 cash for...
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...NEGOTIABLE INSTRUMENT •Written contract for the payment of money, by its form intended as substitute for money and intended to pass from hand to hand to give the holder in due course the right to hold the same and collect the sum due PROMISSORY NOTE •unconditional promise in writing made by one person to another signed by the maker •engaging to pay on demand, or at a fixed or determinable future time a sum certain in money to order or to bearer •where a note is drawn to the maker’s own order, it is not complete until indorsed by him Parties: 1. Maker—one who makes a promise and signs the instrument 2. Payee—party to whom the promise is made or the instrument is payable BILL OF EXCHANGE •unconditional order in writing addressed by one person to another signed by the person giving it •requiring the person to whom it’s addressed to pay on demand or at a fixed or determinable future time a sum certain in money to order or to bearer Parties: 1. Drawer—one who gives the order to pay money to a 3rd party 2. Drawee—person to whom the bill is addressed and who is ordered to pay 3. Payee—party in whose favor the bill is drawn or is payable When bill may be treated as promissory note. 1. Where the drawer and the drawee are the person such as, in a draft drawn by an agent on his principal by authority of the principal. 2. Where the drawee is a fictitious person. 3. Where the drawee has no capacity to contract. Referee in case of need – is the person...
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...be disclosed in the financial statements. Any restrictions or covenants must also be disclosed. These restrictions are placed on the issuing corporation to protect the bondholder. Restrictions may include inability to pay bonuses or dividends, purchase additional capital assets, a requirement for bond sinking funds, or maintaining specified levels of working capital or debt ratios. Any violations of bond restrictions or covenants must be disclosed. Bonds are reported at face value less unamortized discount or plus unamortized premium. The current portion (due within a year) is reported as a current liability, the remainder is reported as a long-term liability. Notes payable are sums of money borrowed by a company that are evidenced by a promissory note. Notes payable have a specified maturity date and generally have a specified interest rate. Notes payable that do not have a specified interest rate are issued at a discount and the interest component is the difference between the face amount of the note and the cash received. Notes payable can also have restrictions similar to bonds payable. The discount is amortized to interest expense over the life of the note. Notes payable are recorded at the present value of the principle and the present value of the interest payments. Capital leases are a form of financing used to acquire capital...
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...Bill of Exchange 8 G LEARNING OBJECTIVES After studying this chapter, you will be able to : • state the meaning of bill of exchange and a promissory note; • distinguish between a bill of exchange and a promissory note; • state the advantages of bill of exchange; • explain the meaning of different terms involved in the bill transaction, • record bill of exchange transactions in journal; • record transactions relating to dishonour, retirement and renewal of bill; • describe the uses of bill receivable and bill payable book; • state the meaning and use of accommodation bill. oods can be sold or bought for cash or on credit. When goods are sold or bought for cash, payment is received immediately. On the other hand, when goods are sold/bought on credit the payment is deferred to a future date. In such a situation, normally the firm relies on the party to make payment on the due date. But in some cases, to avoid any possibility of delay or default, an instrument of credit is used through which the buyer assures the seller that the payment shall be made according to the agreed conditions. In India, instruments of credit have been in use since time immemorial and are popularly known as Hundies. The hundies are written in Indian languages and have a large variety (refer box1). Box 1 Hundies and its Types There are a variety of hundies used in our country. Let us discuss some of the most common ones. Shahjog Hundi: This is drawn by one merchant on another, asking the latter...
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