Question? Call Us  +1 (817) 546-4770

LAW 616 001 Negotiable Instruments

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

LAW 616 001 Negotiable Instruments

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

LAW 616 001 Negotiable Instruments

0 Download3 Pages / 682 Words

Course Code: LAW 616 001
University: American Public University System

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United States

Question
Ben agrees to buy a VW Polo motor vehicle from Kate. As part of the agreement, Ben draws a cheque for R170 000.00 on ABSA Bank payable to “Kate” and delivers the cheque to Kate. Kate delivers the motor vehicle to Ben. Kate decides to cede her rights from the sales contract to Thandi, but keeps the cheque in her possession. Ben approaches you for legal advice, since he is worried that he might be liable twice. His biggest concern is that both Kate and Thandi will be able to claim payment to the value of R170 000.00 from him. 
You are instructed to draft a legal opinion on this matter. Your legal opinion must indicated whether Kate, Thandi or both of them will be able to succeed in recovering the R170 000.00 from Ben. 
Hint: Your assignment must include an in depth discussion of the cambial and underlying obligations. 

Answer
Negotiable Instruments
Introduction
Ben and Kate entered into an agreement for the purchase of VW Polo motor vehicle. In fulfilment of his obligation, Ben has a drawn a cheque for R 170 000.00 on ABSA Bank payable to Kate and delivered the said cheque to Kate. Kate has also delivered the motor vehicle to Ben. However, Kate has ceded her rights in the contract to Thandi but has retained the cheque. Ben is apprehensive that Thandi might also claim R 170 000.00.
Issues
The issue for determination is whether both Kate and Thandi can recover the R170 000.00 from Ben.
Law
Bill of Exchange Act 34 of 1964 governs cheque transactions. Cheque and the bill of exchange are both defined under section 1 of the Act. Under the Acta cheque is a bill of exchange. Section 2 of the Act provides definition of a bill of exchange and requirements for a valid of bill of exchange. Any alleged bill lacking requirements under section 2 (1) of the Act is not a bill of exchange . The bill must contain the name of the payee , sum payable  and must be payable to the bearer.
Section 15 of the Act provides for the definition and circumstances under which acceptance is deemed to have taken place. The drawee acknowledges acceptance by writing and signing the bill of exchange .Bill of exchange only becomes complete upon delivery . Upon delivery the contract is complete and the rights of the holder under section 36 and drawer’s liability under section 53 accrue.The delivery of the cheque does not extinguish the underlying obligations but holds any claim under the cheque is either paid or dishonoured and the obligation is discharged where is payment or dishonour.
Upon delivery, cheque also creates another contract between the parties enforceable on its own. Parties, thus, have co-existing underlying obligations under the main contract and a cambial obligation under the contract by the cheque with the underlying obligation being the thecausaof the contract on the instrument. In Adams v SA Motor Industry Employers Association the court explained the creation of the cambial obligation and the relationship between the cambial obligations and the underlying obligations. Cambial obligation was also discussed in Froman v Robertson and Harbinder Singh v Abalegani Supplies and Another.
Application
The cheque delivered to Kate qualifies as a bill of exchange in accordance with the Act. It complies with the requirements under section 2 of the Act. The Cheque has been delivered completing the contract and thus creating the cambial obligation. Kate has ceded her right under the sale contract extinguishing her underlying obligations under the said contract. Extinguishing the underlying obligations also extinguishes the obligations under the instrument . The contract cannot be enforced against Kate. As was held in Froman v Robertson the holder’s right to enforce a contract under the cheque will be defeated where the requisite justacausais found to have been broken .Ben also retained the right to countermand where the there is a breach of the contract . The countermanding stops any intended payment on the cheque.
Conclusion
Based on the Bill of Exchange Act 34 of 1964, Adams v SA Motor Industry Employers Association ,Froman v Robertson and Harbinder Singh v Abalegani Supplies and Another both Kate and Thandi cannot claim payment from Ben. Kate cannot choose to enforce her rights under the cheque without the existence of the contract of sale. Ben is liable to one of them under the contract and thus if may choose to countermand the cheque issued to Kate.
Bibliography
Fan J. and Pereira A.D.

Commercial and Economic Law in Macau. Kluwer Law International

Gerling L and Tobias D

Handbook On the Law of Negotiable Instruments. Johannesburg: Juta

Johnston D. and Zimmermann R

Unjustified Enrichment: Key Issues in Comparative Perspective. Cambridge University Press.

Malan F.R., Pretorius J.T and Du Toit

Malan on Bills of Exchange, Cheques and Promissory Notes. 5th edition. Durban: Lexis Nexis.

Nagel CJ and Pretorius JT

Countermanding payment of a cheque. Journal for Contemporary Roman Dutch Law HRHR67: 641-655

Van der Merwe C.G and Du Plessis J.E

Introduction to the Law of South Africa. Kluwer Law International

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.

E-mail

Yes, alert me for offers and important updates

Submit 

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 3 pages

PAY 2 USD TO DOWNLOAD

*The content must not be available online or in our existing Database to qualify as
unique.

Cite This Work
To export a reference to this article please select a referencing stye below:

APA
MLA
Harvard
OSCOLA
Vancouver

My Assignment Help. (2021). Negotiable Instruments. Retrieved from https://myassignmenthelp.com/free-samples/law-616-001-negotiable-instruments/polo-motor-vehicle.html.

“Negotiable Instruments.” My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/law-616-001-negotiable-instruments/polo-motor-vehicle.html.

My Assignment Help (2021) Negotiable Instruments [Online]. Available from: https://myassignmenthelp.com/free-samples/law-616-001-negotiable-instruments/polo-motor-vehicle.html[Accessed 19 December 2021].

My Assignment Help. ‘Negotiable Instruments’ (My Assignment Help, 2021) accessed 19 December 2021.

My Assignment Help. Negotiable Instruments [Internet]. My Assignment Help. 2021 [cited 19 December 2021]. Available from: https://myassignmenthelp.com/free-samples/law-616-001-negotiable-instruments/polo-motor-vehicle.html.

×
.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}

×

Thank you for your interest
The respective sample has been mail to your register email id

×

CONGRATS!
$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1
month.

Account created successfully!
We have sent login details on your registered email.

User:

Password:

At MyAssignmenthelp.com, we are committed to deliver quality assignment assistance in the fastest way possible. To make our service delivery fast, we have hired subject matter experts to work on different subject specific assignments. We have hired experts who owe in-depth knowledge in their respective subjects. As per their expertise, they provide geography assignment help, Physics assignment help, Strategic assignment help, history assignment help, art architecture assignment help and assistance with other subjects as well.

Latest Business Law Samples

div#loaddata .card img {max-width: 100%;
}

BU1112 Business Law
Download :
0 | Pages :
6

Course Code: BU1112
University: James Cook University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answer:
Part A
Issue:
Whether Stella is considered as an employee of PRX?
Rule:
The main difference between employee and independent contractor is stated below:
Employee entered into contract of service, but contractor entered into contract for services.
Employer exercise control over the employee but no control was exercised by employer on contractor. It is considered as traditional test which was developed in Zuijs v Wirth Bros(Zuijs…
Read
More
Tags:
Australia South Lake Management health finance management  University of New South Wales 

BSBWHS605 Develop Implement And Maintain WHS Management Systems
Download :
0 | Pages :
15

Course Code: BSBWHS605
University: Swinburne University Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
Work Health and Safety Management System (WHSMS) is a collection of plans, tools, activities and processes. List 3 of these plans, tools, activities or processes and explain what they are,
The means, nitty gritty beneath, can be utilized whether the arranging procedure is straightforward or complex. They are:
Evaluating the current word related to wellbeing and security status including the ‘administration framework’ Lussier, R. N…
Read
More
Tags:
Australia Brisbane Management Work Health and Safety Management System (WHSMS University of Brisbane MBA 

BUSN331 Business Law
Download :
0 | Pages :
3

Course Code: BUSN331
University: Centennial College

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Canada

Answers:
Introduction
In Alberta, the Residential Tenancies Act applies to all the people in this jurisdiction, who rent their space out (Alberta Queen’s Printer, 2016). Through this act, the rights and responsibilities of the landlords and tenants are brought forward (Landlord and Tenant, 2015).
Question 1
Before a tenant can move in the rented accommodation, the tenant and the landlord have to reach an agreement, with regards to the…
Read
More
Tags:
Australia Edmonton Humanities Management University of New South Wales Masters in Business Administration 

LA1040 Contract Law
Download :
0 | Pages :
11

Course Code: LA1040
University: University Of London

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Answer:
Introduction 
A contract is an agreement between the parties which is enforceable legally in the courts. There are several provisions of law which governs how the terms related to the contract would operate. A contract consists of a set of provisions which are known as contractual terms. The weightage of such terms are not equal as one term may have a more significant consequence as compared to the other in relation to their brea…
Read
More
Tags:
United Kingdom London Economics Management University of London 

TLAW202 Corporations Law
Download :
0 | Pages :
9

Course Code: TLAW202
University: Top Education Institute

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Answers:
1.
If any person wants to carry out his business in the form of a company, then, it is necessary that the registration or incorporation requirements of such country must be met. In Australia, the Corporation Act 2001 and the guidelines laid down by ASIC provides with the steps that must be accomplish in order to establish a corporate entity.  (Malbon & Bishop, 2006).
A company is of great significance as it is treated as a …
Read
More

Next

Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

PROJ6016 Employer Based Project

Free Samples PROJ6016 Employer Based Project .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} PROJ6016 Employer

Read More »

PPMP20009 Marking Rubric

Free Samples PPMP20009 Marking Rubric .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} PPMP20009 Marking Rubric

Read More »