This paper looks at negotiable instruments and some legal issues surrounding their use.
This paper is an in-depth examination of a person’s legal rights when dealing in negotiable instruments. Negotiable instruments are checks, promissory notes, COD’s and drafts, all of which must be in writing. The paper also examines the issues of fraud, forgery and liability which can sometimes accompany the use of negotiable instruments. The author also examines some of the legal remedies available to victims of these types of crimes.
“There are many defenses to avoid liability on negotiable instruments and elements associated with forgery, fraud and alterations in relation to negotiable instruments. One of the provisions in UCC Article 3-119 states that the defendant should give the third person written notice of litigation and other person should receive a similar notice. If the notice says that the person notified should appear to defend themselves, and that person does not appear that person would be held responsible. Other defenses are not of a material alteration, change was authorized, unauthorized completion, original terms, negligence, customer negligence to examine report, one-year bar and statute of limitations.”