Explain the main features of negotiable instruments.
How to lay out the answer. Follow the frame, then write it in your own words.
1 · Define in two lines. A written instrument for payment of money, transferable by delivery or endorsement, governed by the Bills of Exchange Ordinance.
2 · Free transferability. Bearer: by delivery. Order: by endorsement and delivery.
3 · Holder in due course. Takes in good faith, for value, without notice of defects, and gets a good title: an exception to nemo dat.
4 · Other features.
Holder sues in his own name.
Presumptions of value and due course.
In writing, signed, unconditional, sum certain.
5 · In Sri Lankan business. An exporter discounts an accepted bill with its bank.
Scoring tip: Name the Ordinance and the 1882 English Act in your first line.
