MBAL-105: Legal Aspects in Business – Unit 15

MBAL-105: Legal Aspects in Business – Unit 15

Objectives: differentiate between assignment and negotiation; explain the requisities of negotiation by endorsement and delivery; discuss the meaning of negotiation back; and state various implications of instruments when they are lost or stolen, forged, and obtained by fraud or for unlawful consideration.

Materials:
The relevant material is available here.

Questions:

1. Examine the differences and similarities between a negotiation and an assignment.
2. Explain the requisities of a valid negotiation made by a simple delivery.
3. Discuss the nature of liabilities of a drawer of a bill, note and cheque.
4. Discuss the nature of the liability of a drawee of a cheque.
5. Explain the liabilities of various parties to instruments.