Fraud in the execution/inception contract is void
Fraud in the inducement voidable contract
Parole evidence rule has nothing to do with whether the contract is void, voidable or illegal.
Buyer breeches contract in order for seller to prove money damages then the contract price was greater than the fair market value.
Land had fair market value of 429000 contract price of 450000 buyers breach cost the seller the difference of 21000
Mutual mistake as to a material existing fact makes it, its material fact, voidable
Mutual mistake prevents the first element of a contract present, offer and acceptance which doesn’t connect then its void.
Specific performance and injunction are equitable remedy, money damages are remedies at law.
Negotiation is a blank endorsement and c passes it to d
Holder in due course is immune from personal defenses
No party is secondarily liable if there signature is not on the document..signed for delivery only.
Special endorsement- b had written pay to c then signed his name, designating a specific payee, then c when negotiated to d, would have had to indorced it when he passed the instrument to b
Restrictive indorsement which proports to either prohibit or in someway limit further negotiation of the instrument. Most prevalent form of restrictive indorsement..take check to the bank and endorse it for deposit only
Are you prohibiting further negotiation of the instrument?
Check payable to you is drawn on bank of America and you do your banking at jp morgan chase, and you take that check to chase for deposit into your checking account is that check going to have to be further negotiated? Yes, has to go back to bank of America the drawee, so what is the effect of your deposit only restrictive indorsement? You’ve locked it into banking challenge.
Conditional endorsement, type of restrictive endorsement
B negotiated to C, but put pay to c only if c completes construction of warehouse by july 2014 and signs his name. that is a conditional indorsement. That note now in the hands of C and the due date has arrived and its after the date so C presents it to A for payment, so A has to check with B if C met the terms of condition. If he says no then he cant receive money.
Secondary and Primarly liability
Maker of promissory note or issuer of CD are primarily liable
On a check or draft the drawee is primarily liable
When does primary liability attaches? The drawee isn’t primarily liable when the draft is drawn the drawee’s primarly liable for the instrument when the drawee accepts the draft
If a check bounces primary liability never attached and it bounces back to payee
Nature of drawer on a check is seconday liability
If the party who is primarly liable is the drawee only upon acceptance of the instrument the drawers liability is secondary
Secondary liability is a liability of a guarantor, if the person who is primarly liable doesn’t pay ill pay
An endorsement that is not specifically qualified than by default its unqualified
A qualified endorsement than the endorser or transforer is not going to be secondarily liable
Signed without recourse, when e transfers to f, than e is not secondary liable
E is selling property, intangible personal property represented by the negotiable instrument if e sells to f at a 12percent discount, f sells it to g and g takes it to a, c and e are not secondarily liable
Is the note worth more less or the same if the endorsement is qualified?
Yes it could affect value.
Whenever an instrument is transferred for consideration where the transferee gives the transforer something that’s the sale of intangible personal property, certain implied warranty that would go along with each of the negotiotions where the transferee pays the transforer for that paper. The warranty that