Exam 19: Negotiable Instruments

A court in British Columbia decided that a promissory note payable at a variable interest rate (e.g.,prime + 1% per annum)was not a negotiable instrument.Why might the court make this decision? How might the decision affect the rights of a third party obtaining the promissory note through endorsement?

Who is the drawer of a bill?

A forges his signature on a cheque made in favour of B,who then endorses it to the order of C.C then endorses the cheque to the order of D,who has no way of knowing that the cheque has been forged.In this case

Explain the purposes of endorsement.

Certification is an undertaking by the bank to pay the amount of the cheque to the drawer when it is presented for payment.