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American Commercial Law Series | by Alfred W. Bays



Contracts. Negotiable Paper. Sales Of Personal Property. Agency. Partnership. Corporations. Insurance. Suretyship. Debtor And Creditor Bankruptcy. Banks And Banking. Property.

TitleAmerican Commercial Law Series
AuthorAlfred W. Bays
PublisherCallaghan And Company
Year1920
Copyright1920, Callaghan And Company
AmazonAmerican Commercial Law Series
American Commercial Law Series: book cover

Volume I. Contracts

Volume II. Negotiable Paper

Volume III. Sales Of Personal Property

Volume IV. Agency. Partnership

Volume V. Corporations

Volume VI. Insurance. Suretyship

Volume VII. Debtor And Creditor Bankruptcy.

Volume VIII. Banks And Banking.

Volume IX. Property

This series of books is respectfully dedicated to professor Willard Eugene Hotchkiss, dean of northwestern university school of commerce, whose zeal in the cause of commercial education has been a constant source of inspiration to the author.

-Preface To Revised Edition
The first edition of these books was prepared and published in 1911 and 1912, largely with the idea of meeting the class room needs of the author's own students. They have, however, been widely sold t...
-General Survey. Chapter 1. Law Defined
Sec. 1. What Is Law To obtain an accurate estimate of the idea contained in the word law (i. e., political law) it must first be divided into that law which governs sovereign nations in their relat...
-Chapter 2. The Branches Of Municipal Law
Sec. 5. Constitutional Law The law by which a government is organized and by which basic principles of its existence are formulated and enforced is known as constitutional law. The constitutiona...
-The Branches Of Municipal Law. Part 2
Sec. 7. The State Constitutions The state con-stitutions are those by which the people of the state constitute their local form of government and limit the powers of their own representatives. W...
-The Branches Of Municipal Law. Part 3
Sec. 10. The Law Of Torts The law of torts is the law which determines the obligations of each person toward his neighbor as imposed by the general law of the land and by the breach of which the ne...
-Chapter 3. Form Of Law
Sec. 13. Purpose Of This Chapter In this chapter we propose to inquire into the form which the law takes in its expression. Where it is stated, so that we may read it ? Who has authority to state i...
-Chapter 4. The Judicial System
Sec. 21. Function Of The Courts The courts are the constituted tribunals for the trial of cases according to the law as interpreted by them. In our scheme of government we have the legislature t...
-The Judicial System. Continued
Sec. 23. Courts Of Original Jurisdiction And Of Review Our courts may be divided into those courts which take original jurisdiction for the trial of cases and those courts to which a defeated party...
-Chapter 5. Administrative Boards And Commissions
Sec. 25. In General There have been created in the federal government and in the state governments, boards and commissions of considerable importance in the administration of certain laws. These bo...
-General Law Of Contract. Part I. Formation Of Contract. Chapter I. Definition And Classification
Sec. 1. Contract Defined A contract is an agreement that contemplates as its object and results in an obligation for the breach of which a suit for damages may be maintained in a court of law. T...
-Chapter 2. Parties To Contracts. A. Who Are Parties
Sec. 4. Parties Defined A party to a contract is a person who by himself or his agent, has a part in making the contract. A contract carries an adversary idea, that is to say, an arrangement of ...
-B. Minors
Sec. 6. Who Are Minors? A minor or infant is one who has not attained the age which the law deems necessary to give him his full maturity of mind and below which he requires a special protection fr...
-B. Minors. Part 2
Sec. 9. What Are Necessaries? Necessaries are advantages supplied to a person under age which are requisite to his physical well-being, and common school education, and with which he is not already...
-B. Minors. Part 3
Sec. 11. Tortious Liability Of Minors In Cases Involving Contracts A minor is responsible for his torts. If in connection with some voidable contract made by him he commits a wilful and independent...
-Chapter 3. Offer And Acceptance. 1. What Constitutes. A. Necessity Of Offer And Acceptance
Sec. 17. No Contract Without Offer And Acceptance In every contract, there must be an offer and an acceptance thereof. Offer and acceptance are essential to contract. That is, there must be, as ...
-C. Duration Of Offer
Sec. 23. Duration Of Offer An offer remains open for acceptance: (1) The time stated; or (2) if no time is stated, a reasonable time; provided in either case it is not sooner withdrawn. An offer...
-D. The Acceptance
Sec. 29. What Constitutes Acceptance Acceptance is a definite manifestation of a purpose to be bound according to the terms of the offer. Therefore there is no acceptance where there is doubt or di...
-Chapter 4. Offer And Acceptance. 2. Validity Of Assent Therein
Sec. 33. Introduction We have discussed what will constitute offer and what acceptance. In so doing we have assumed a true contractual intent on both sides without mistake as to subject matter, or ...
-Offer And Acceptance. Validity Of Assent Therein. Part 2
Sec. 35. Mistake A mutual mistake of fact, (a) as to the existence of the subject matter, (b) as to the identity of the subject matter, (c) as to terms employed, prevents the existence of a contrac...
-Offer And Acceptance. 2. Validity Of Assent Therein. Part 3
Sec. 38. Opinions And Predictions Not Fraud Opinions and predictions are not fraud even if stated by one who himself does not believe them to be true. It is well established that the statement o...
-Offer And Acceptance. 2. Validity Of Assent Therein. Part 4
Sec. 42. Silence As Fraud - Contract One Uberrimae Fidel If a contract is of such a nature that it presupposes full disclosure non-disclosure is fraud. This has been applied to cases of suretyship ...
-Chapter 5. Consideration
A. Theory and Nature. Sec. 49. Consideration Defined; A Necessary Element In Every Simple Contract A promise or undertaking not under seal is not legally binding upon the promisor unless the pro...
-Consideration. Part 2
Sec. 51. Consideration May Consist In Promise Or Act The detriment sustained by one as a consideration may be either his promise or his act, whichever is responsive to the expression of the other s...
-Consideration. Part 3
Sec. 55. Part Payment Of Debt As Consideration For Release Of Balance A payment of a part of a debt whose amount is liquidated and not in question is not a good consideration for a release of the e...
-Chapter 6. Legality Of Contracts
A. Legality of Contract an Essential Element. Sec. 59. Illegal Agreements Void Any agreement to violate the law and any agreement forbidden by law is void. An illegal agreement cannot be a co...
-Legality Of Contracts. Part 2
Sec. 61. Contracts Of Monopolistic Tendency Contracts of monopolistic tendency are illegal by the principles of the common law and by statute. A contract whose purpose or effect is to create mon...
-Legality Of Contracts. Part 3
Sec. 64. Wager Contracts A wager contract is a contract that on the outcome of a risk created or assumed by the contract, one party shall be winner, the other loser. It is illegal. There are man...
-Legality Of Contracts. Part 4
Sec. 69. Knowledge By One Of Other's Intent To Commit Crime Where the contract is innocent upon its face, and the intention of one party is not illegal, the guilty intention of the other will not i...
-Chapter 7. Form And Evidence Of Contract
Sec. 76. General Statement We have considered the ingredients that must enter in the formation of contracts, without which a contract cannot exist; confining ourselves to a consideration of those e...
-Form And Evidence Of Contract. Part 2
Sec. 79. Instruments Requiring Seal At Common Law By the common law a seal is essential to make binding all promises intended to operate without consideration and is required upon deeds, mortgages,...
-Form And Evidence Of Contract. Part 3
Sec. 83. Text Of The Statute Of Frauds The original English Statute of Frauds provided as follows: That no action shall be brought (1) whereby to charge any executor or administrator upon any s...
-Form And Evidence Of Contract. Part 4
Sec. 86. Promises To Answer For The Debt, Default, Or Miscarriage Of Another Person A promise of any person to answer for the debt, default, or miscarriage of another person cannot be enforced unle...
-Form And Evidence Of Contract. Part 5
Sec. 90. Contracts For The Sale Of Goods, Wares And Merchandise For A Certain Price Or Upwards 131. Bull v. Griswold, 19 Ibid. 631. 132. MacElree v. Wolfersberger, 59 Kan. 105. These contract...
-Form And Evidence Of Contract. Part 6
Sec. 94. Contracts For Work And Labor Not Within The Statute If when the contract was made it was contemplated that the seller should make up for the buyer the goods which were the subject matter...
-Form And Evidence Of Contract. Part 7
Sec. 97. Parol Evidence Rule Permits Contract Partly In Writing And Partly Oral The parol evidence rule does not prevent a contract from being partly oral and partly in writing if such appears to h...
-E. Oral And Implied Contracts
Sec. 100. Oral Contracts Any contract may be oral which the law does not require to be in writing. The general rule is that any contract may be oral (or implied) if some statute does not require...
-F. Contracts Implied In Law Or Quasi-Contracts
Sec. 102. Definition Of Quasi Contract A quasi contract may be defined as a legal obligation arising out of the receipt of a benefit for which there has been no actual promise to pay the retention ...
-Part II. The Interpretation Of Contracts. Chapter 8. General Rules Of Interpretation
Sec. 103. The Governing Principle In Construction Of Contracts The purpose of construe tion of contracts is to discover the intention of the parties. It is not a court's business, nor has it pow...
-Chapter 9. Construction In Respect To Time Of Performance
Sec. 105. In A Court Of Law, Time Is Of The Essence In a court of law time is deemed to be of the essence of a contract, and, unless time is waived, performance must be within the time stated, or, ...
-Chapter 10. Interpretation Of Provisions As To Penalties Or Liquidated Damages
Sec. 107. In Explanation Usually in contracts, no provision is made as to rights or remedies in event of breach, but not infrequently the possibility of breach is contemplated, and provisions made ...
-Part III. Operation Of Contracts. Chapter 11. Operation As To Parties
Sec. 112. General Rule A contract operates to confer upon the parties, and only upon the parties, rights and obligations according to its tenor. We have discussed the formation of the contract, ...
-Chapter 12. Beneficiaries To Contracts
Sec. 113. General Statement One who is not a party to a contract, but who benefits thereby, cannot sue upon it at all in some jurisdictions, but in the majority may sue provided he comes within rul...
-Chapter 13. Assignment Of Contracts
Sec. 116. General Statement The transfer of something of an incorporeal nature is accomplished by assignment. Assignment may signify (1) a sale; (2) a pledge to secure a loan; (3) a gift; (4) a tra...
-Assignment Of Contracts. Continued
Sec. 122. The Assignee As The Successor To The Title Of The Assignor The assignee takes the title and right of the assignor, and is subject to all the equities and defenses between the original par...
-Chapter 14. Interference With Contractual Relationships By Third Parties
Sec. 126. Duty Not To Interfere With Contract Rights A third person has a duty not to interfere to induce another to break his contract, unless done in good faith, in the exercise of fair competiti...
-Part IV. Discharge Of Contracts. Chapter 15. Discharge By Performance, Tender And Breach
Sec. 129. Meaning Of Phrase Discharge Of Contracts. A contract is discharged when the obligations thereunder are in some way extinguished, so that no liability on the contract furthermore exists...
-Discharge By Performance, Tender And Breach. Continued
Sec. 133. Effect Of Acceptance Of Performance Which Does Not Fulfill Requirements Of Terms If defective or part performance is accepted, with knowledge of the breach, such acceptance, when voluntar...
-Chapter 16. Discharge Of Contracts By Other Means Than Performance Or Breach
Sec. 138. Discharge By Impossibility Of Performance If an event transpires rendering performance impossible this will discharge the contract where it may be said to have been the mutual intent of t...
-Chapter 17. Remedies Of The Parties. A. Action For Damages
Sec. 145. In General The most usual relief which one has against another for breach of contract is an action for damages in a court of law. And wherever there is a breach of contract, the other par...
-Appendix. Questions And Problems. Appendix. Questions And Problems In General Survey
Chapter 1 1. What are the two great branches of political law? What is municipal law? 2. What is international law? What two forms does it take? 3. What are the branches of municipal law, as ...
-Questions And Problems On Contracts
Chapter 1 1. Define contract; is every agreement a contract? Why? What ideas enter into contract? 2. What are the essential elements in contract? 3. Define (a) formal contracts; (b) simple co...
-Questions And Problems On Contracts. Part 2
25. A writes B a letter offering to sell B five carloads of lumber according to terms stated - giving B five days to accept. B replies within the five days agreeing to take the lumber on the terms pro...
-Questions And Problems On Contracts. Part 3
43. What is undue influence? When will it be presumed? When presumed what must the other party do to remove the presumption? Chapter 5 44. Define consideration. Can there be a contract without i...
-Questions And Problems On Contracts. Part 4
61. Define usury. Is it a crime to charge usury? Can usury paid be recovered? What is the penalty of charging usury? 62. A borrows money from B at usurious rates. A repays interest from time to tim...
-Questions And Problems On Contracts. Part 5
83. A applies for Are insurance upon the house and outbuildings upon his farm. The insurance agent comes out and looks the place over and decides to write the insurance. By mistake he mis-described th...
-Law Of Agency. Part I. Nature And Formation Of Agency. Chapter 1. Definitions
Sec. 1. Nature Of Agency If one appoints another to do an act for him as the act of the appointing party, such appointing party is known as the principal or master and the other party the agent or ...
-Chapter 2. Capacity Of Parties And Power Of Delegation
Sec. 5. In General The power of a person to act as principal or to act as agent involves the general subject of the legal competency of classes of persons. The power of any person to be principal o...
-A. Power To Be Principal Or Agent As Dependent Upon Capacity To Contract
Sec. 6. General Rule As To Power To Be Principal The general rule is that whatever one has capacity to do himself he has capacity to appoint another to do for him. If one has legal capacity and ...
-B. Power To Be Principal Or Agent As Dependent Upon Nature Of Act Involved
Sec. 10. Appointment Of Agent For Illegal Purposes An appointment of an agent for an illegal purpose is void. If the agent is appointed for an illegal purpose, the appointment is void. Obviously...
-Chapter 3. The Appointment Of The Agent. A. Authorization By Act Of Party
Sec. 13. In General Except as considered in Part B of this chapter (covering cases not of true agency) an agent's authority must be traceable to something the principal has said or done whereby he ...
-B. Authority Conferred By Law
Sec. 16. In General In some cases, as considered below, one person may bind another without the consent of the other, and even against his protest. But this is a liability imposed by law and is not...
-Chapter 4. Authorization By Ratification. A. Definition And Essentials
Sec. 20. Meaning Of Ratification If one acts as an agent and yet without authority, the party for whom he purported to act may hold the third person, and is himself liable to such third person, by ...
-B. What Constitutes Ratifications
Sec. 22. Express Ratification Express ratification consists in supplying the lack of authority by writing or orally. Ratification may be expressly made. The principal might ratify by express sta...
-Part II. The Duties And Liabilities Arising Out Of. Agency. Chapter 5. The Duties And Liabilities Of The Principal To The Agent
Sec. 28. Agent's Right To Compensation The agent's right to compensation depends on his contract, and may be either conditional upon results or absolute. His right may be implied from the facts. ...
-Chapter 6. The Duties And Liabilities Of The Agent To The Principal. A. The Agent's Obligation Of Good Faith
Sec. 33. Duty Of The Agent To Use Good Faith General rule. The agent must display and exercise the utmost good faith toward his principal. One employs another as agent out of personal regards. T...
-B. Duty To Obey Instructions, Use Care And Skill, Etc
Sec. 37. Duty Of Agent To Obey Instructions An agent must obey instructions and is personally responsible for losses resulting from disobedience and may be discharged for disobedience. 47. Blank...
-C. Liability Of Agent To Principal For Defaults Of The Third Person
Sec. 42. General Rule The general rule is that an agent has no responsibility for defaults of the third person upon the contract executed by the agent. An agent is merely an intermediary. He for...
-Chapter 7. The Duties And Liabilities In Contract Of A Disclosed Principal To Third Persons (The Authority Of The Agent)
Sec. 44. General Rule A principal in whose name a contract is made pursuant to authority, is liable to the third person. We may find three situations in which a principal who is disclosed at the...
-Duties Of A Disclosed Principal To Third Persons. Part 2
Sec. 48. Construction Of Special Appointments Special powers of attorney or appointments will not be extended by implication to include any act not necessary or reasonable to carry into effect the ...
-Duties Of A Disclosed Principal To Third Persons. Part 3
Sec. 53. Implied (Or Apparent) Power Of Agent To Sell To Receive Payment An agent who has power to sell does not have implied or apparent power to receive the price unless (1) he has and delivers p...
-Chapter 8. Undisclosed Principals
Sec. 59. General Rule If the principal is undisclosed at the time of the transaction, but subsequently discovered, the third person may elect to hold such principal because he is the real party in ...
-Chapter 9. Principal's Liability For Torts Of Agents
Sec. 66. Authorized Torts If the principal authorizes the tort, he is liable. If before the commission of a tort by an agent the principal authorizes or counsels its commission he is liable as a...
-Chapter 10. The Duties And Liabilities Of The Agent To The Third Person
Sec. 70. General Statement Where the agent regularly pursues his authority and acts as an agent and not as principal, and is guilty of no wrong, he is not liable to the third person with whom he ac...
-A. Liability Of Agent In Contract
(a) The agent warrants his authority. Sec. 71. Warranty Of Authority By Agent If an agent expressly claims to have authority or by his acts indicates that he has authority, he warrants his autho...
-B. Liability Of Agent In Tort
Sec. 78. Agent Responsible For His Torts An agent is responsible to third persons for torts committed by him, whether the principal is liable or not for them. An agent is responsible for his tor...
-Part III. Professional Agents. Chapter 11. Professional Agents. A. Factors
Sec. 79. Definition Of Factor A factor, or commission merchant is an agent, who receives goods from the owners thereof to sell for a commission. Where he sells upon a guaranty of payment of debts a...
-B. Brokers
Sec. 84. Definition A broker is one whose business is to bring parties together to contract, or in their name to contract for them, in some line of business. A broker makes it his business to br...
-C. Auctioneers
Sec. 87. Auctioneer Defined An auctioneer is an agent who makes it his business to represent owners of property in selling the same to the highest and best bidder among those who attend the sale. ...
-Part IV. Termination Of Relationship. Chapter 12. Termination By Act Of Parties
Sec. 91. By Terms Of Original Agreement Where the authority is stated to be for a limited period, the passing of the term terminates the agency. If one is employed as agent for a certain time, t...
-Chapter 13. Revocation By Operation Of Law
Sec. 99. By Death Of Principal The death of the principal terminates the agency, except when the agency is coupled with an interest. This is true though the death is unknown when the contract was a...
-Appendix A. Forms
(It is not believed desirable to furnish forms in a book of this character, except forms commonly in use, and for purpose of illustration. A form of power of attorney is supplied below.) 1. Power o...
-Appendix B. Questions And Problems
Chapter One 1. Define the terms agent and servant ; show in what way an agent is the same as a servant and in what respects the two differ, and how an agent or servant differs from an independe...
-Appendix B. Questions And Problems. Part 2
25. A employed B to purchase property for her for $5,000. B negotiated with the owner and found he could purchase for $4,500. B thereupon bought it himself. A learning of this brings suit, tendering $...
-Appendix B. Questions And Problems. Part 3
47. In a personal injury case, caused by breaking of chains, plaintiff offers to testify as evidence against the defendant that defendant's foreman an hour after the accident stated to plaintiff that...
-Preface To Volume II
In preparing this book the author considered the plan of setting out the Negotiable Instruments Act, section by section, following each section with an explanation and illustrations. But for several r...
-The Law Of Negotiable Paper. Part I. General Nature And History. Chapter 1. What Is A Negotiable Instrument. A. General Description Of Negotiable Paper
Sec. 1. Technical Significance Of The Term Negotiable. By the term negotiable we Indicate that certain instruments, so described, are given by law a property by virtue of which they may be tran...
-B. Negotiability Of Various Instruments Considered
(a) The instruments which are negotiable by and subject to the negotiable instruments law or law merchant. Sec. 2. Promissory Notes A negotiable promissory note within the meaning of this act i...
-B. Negotiability Of Various Instruments Considered. Continued
Sec. 4. Checks A check Is a bill of exchange drawn on a bank, payable on demand.4 A check may be called a kind of a bill of exchange. It differs from other bills of exchange in these particula...
-Chapter 2. History And Origin Of Negotiable Paper
Sec. 13. Continental Origin And Adoption In England Bills of exchange originated among the Florentine and Venetian merchants. They came into use in England and with promissory notes became negotiab...
-Part II. The Formation Of The Contract. Chapter 3. Expression In Negotiable Form. 1. Formal Requisites
Sec. 15. In General Certain elements are required by law to be present in any instrument, as essential to negotiability. While it cannot be said that there are any particular words, exclusively nec...
-A. "It Must Be In Writing And Signed By The Maker Or Drawer."
Sec. 16. Writing And Signature A negotiable instrument must be written and signed. Rights secured through oral promises may be assignable but never negotiable, no matter what words are used to e...
-B. "Must Contain An Unconditional Promise Or Order To Pay A Sum Certain In Money."
Sec. 17. Unconditional Promise Or Order A negotiable Instrument must contain an unconditional promise or order-------. (1) In general. Absolute promise or order is essential. A note must co...
-"Must Contain An Unconditional Promise Or Order To Pay A Sum Certain In Money.". Continued
7. Siegel v. Bank, 131 Illinois Reports, 669. The court decided that the note was negotiable and allowed the bank to recover judgment thereon; saying in part: If it be conceded, as it must, tha...
-C. Must Be Payable On Demand Or At A Fixed Or Determinable Future Time
Sec. 20. Demand Paper Instrument may be payable on demand. It is a common practice to make negotiable paper payable on demand. It is payable on demand: 1. Where it is expressed to be paya...
-D. "Must Be Payable To Order Or To Bearer."
Sec. 22. Necessity Of Words Of Negotiability A negotiable instrument must contain words of negotiability. These stamp its character. The intent of the parties as to the negotiability of the inst...
-Chapter 4. Expression In Negotiable Form. 2. Non-Essential And Non-Vitiating Matter Of Form And Rules Of Construction
Sec. 25. Authorizing Sale Of Collateral Securities A provision which authorizes the sale of collateral securities in case the instrument is not paid at maturity, is valid and does not affect negoti...
-Chapter 5. Execution And Delivery. Parties Bound
Sec. 33. Delivery Essential; When Presumed The Instrument Is Ineffectual between the parties until delivery thereof, which consists of a parting with the control over It, with an Intention to be bo...
-Chapter 6. Consideration For Execution.27
Sec. 36. Necessity Of Consideration Every negotiable Instrument to be enforceable between the parties must be supported by a consideration. But lack of consideration cannot be availed of against a ...
-Chapter 7. The Formation Of The Acceptor's Contract
Sec. 39. Definition Of Acceptance The acceptance of a bill is the signification by the drawee of his assent to the order of the drawer. The acceptance must be in writing and signed by the drawee. ...
-Chapter 8. The Formation Of The Contract Of Parties For Accommodation Or For Honor
Sec. 47. Accommodation Party Defined One who becomes a party to a negotiable instrument in order to lend his credit to another is called an accommodation maker, drawer, indorser, or acceptor as the...
-Part III. Operation Of The Contract. Chapter 9. Negotiation. A. In General Of Negotiation And Indorsement
Sec. 50. Meaning Of Negotiation By negotiation Is meant the transfer of negotiable paper by the payee thereof or his transferee with the intention and effect of constituting the transferee the hold...
-B. Kinds Of Indorsement
Sec. 57. Special Indorsement A special Indorsement Is one which specifies a particular Indorsee. An indorsement to a certain person naming him in the indorsement is called a special indorsement....
-Chapter 10. The Title Of A Transferee Of Negotiable Paper
Sec. 62. In General The title of a transferee of negotiable paper involves the two-fold inquiry, (1) whether the party liable on such paper had any defense, and if so what defense, against any prio...
-A. Transferee Must Be A Holder In Due Course To Claim Full Benefit Of Law Merchant
Sec. 63. Holder In Due Course, Who Is In order to claim the peculiar advantages of the law merchant, the holder must be a holder in due course; that is, he must have acquired (1) paper complete and...
-B. The Defenses Which Cannot Be Made Against A Holder
In due course, as above defined. Personal defenses. Sec. 69. Payment Before Maturity If one pays the sum or any part thereof owing, but not due, on paper which he fails to take up or...
-C. The Defenses Which Can Be Set Up Against A Holder In Due Course, As Above Defined. Real Defenses
Sec. 78. Infancy A minor can plead his non-age against a holder in due course. The defense of minority is good against all the world. A minor's express contract is voidable by him. He is liable ...
-Chapter 11. The Contract Of The Parties.40
Sec. 83. Of Maker Of Note The maker's contract Is to pay the note, according to Its tenor, to the payee, or his transferee. He cannot deny the payee's existence or his then capacity to indorse. His...
-Chapter 12. The Procedure Necessary To Fix The Liability Of The Parties
Sec. 92. General Statement In order to fix the liability of parties secondarily liable on a negotiable Instrument it Is necessary to take certain steps provided by law for the benefit of such parti...
-Liability Of The Parties. A. Presentment For Payment At Maturity To Parties Primarily Liable
Sec. 93. Not Necessary To Charge Parties Primarily Liable Presentment of a note to the maker thereof, or of an accepted bill to the acceptor thereof at its maturity, Is not necessary to fix the lia...
-B. Presentment Of Bill For Acceptance
Sec. 97. Presentment For Acceptance Necessary In Certain Cases To Charge Drawer And Indorsers In order to charge the drawer, presentment for acceptance to the drawee is necessary (except where excu...
-C. Notice Of Dishonor
Sec. 101. Notice Of Dishonor Necessary To Charge Drawer And Indorser Notice to the drawer of a bill or check and to the indorser of a bill, check or note, that it has been dishonored by non-payment...
-D. Protest
Sec. 106. Protest Necessary To Charge Drawer And Indorser On Foreign Bill Where a foreign bill is dishonored by non-acceptance or non-payment It must be protested; otherwise the drawer and Indorser...
-Part IV. Discharge Of Negotiable Instruments. Chapter 13. Manner And Effect Of Discharge.44
Sec. 110. Meaning Of Term Discharge. A contract is discharged when it loses Its force and effect as a legal obligation. A discharged contract is one which for some reason is no longer in force...
-Appendix A. Uniform Negotiable Instruments Law
(For states in which this law is substantially enacted, see page 40, note.) Secs. 1-23. Form and interpretation. 24-29. Consideration. 30-50. Negotiation. 51-59. Rights of the holder. ...
-Title I. - Negotiable Instruments in General
Article I. - Form and Interpretation. SEC. 1. An instrument to be negotiable must conform to the following requirements: 1. It must be in writing and signed by the maker or drawer. 2. Must co...
-Negotiable Instruments in General. Part 2
SEC. 15. Where an incomplete instrument has not been delivered it will not, if completed and negotiated, without authority, be a valid contract in the hands of any holder, as against any person whose ...
-Negotiable Instruments in General. Part 3. Negotiation
Article III. - Negotiation. SEC. 30. An instrument is negotiated when it is transferred from one person to another in such manner as to constitute the transferee the holder thereof; if payable to b...
-Negotiable Instruments in General. Part 4. Rights of the Holder
Article IV. - Rights of the Holder. SEC. 51. The holder of a negotiable instrument may sue thereon in his own name and payment to him in due course discharges the instrument. SEC. 52. A holder i...
-Negotiable Instruments in General. Part 5. Liability of Parties
Article V. - Liability of Parties. SEC. 60. The maker of a negotiable instrument by making it engages that he will pay it according to its tenor, and admits the existence of the payee and his then ...
-Negotiable Instruments in General. Part 6. Presentment For Payment
Article VI. - Presentment For Payment. SEC. 70. Presentment for payment is not necessary in order to charge the person primarily liable on the instrument but if the instrument is, by its terms, pay...
-Negotiable Instruments in General. Part 7. Notice of Dishonor
Article VII. - Notice of Dishonor. SEC. 89. Except as herein otherwise provided, when a negotiable instrument has been dishonored by non-acceptance or non-payment, notice of dishonor must be given ...
-Negotiable Instruments in General. Part 8. Discharge of Negotiable Instruments
Sec. 119. A negotiable instrument is discharged: 1. By payment in due course by or on behalf of the principal debtor. 2. By payment in due course by the party accommodated, where the instrument ...
-Title II. - Bills of Exchange
Article I. - Form and Interpretation. Sec. 126 A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to...
-Bills of Exchange. Continued. Presentment for Acceptance
Article III. - Presentment for Acceptance. Sec. 143 Presentment for acceptance must be made.: 1. Where the bill is payable after sight, or any other case where presentment for acceptance is n...
-Title III. - Promissory Notes and Checks
Article VII. - Bills in a set. Sec. 178 Where a bill is drawn in a set, each part of the Bet being numbered and containing a reference to other parts the whole of the parts constitute one bill. ...
-Title IV. - General Provisions
Article I. Sec. 184 A negotiable promissory note within the meaning of this Act is an unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on dema...
-Appendix B. Various Forms
1. Promissory Note. $100.00 Chicago, 111., July 1st, 1911. August first, 1911, after date, for value received, I promise to pay to the order of William Smith, the sum of One Hundred (100) Dollar...
-Appendix C. Table Of Interest Laws
Table Showing What Interest May Be Charged in the Different States and the Effect of Charging Usury. State Interest Chargeable By Contract Penalty for Usury ...
-Appendix D. Questions And Problems
Chapter One 1. State three ways in which a negotiable instrument differs from an instrument not negotiable. How does assignment differ from negotiation? 2. Define a negotiable promissory not...
-Appendix D. Questions And Problems. Continued
Chapter Eight 38. A, for the purpose of securing credit with C, drew a bill of exchange on B, requesting B to accept It, and Informing B that he, A, would be able to pay it when It became toe. w...
-Subdivision I. Bailments And Carriers. Chapter 1. Definitions
Sec. 1. Bailment Defined A bailment is a holding of personal property by one person which belongs to another under a contract or legal duty to redeliver to that other either in the same or altered ...
-B. Extraordinary Bailments
1. Inn Keepers. 2. Common Carriers. Sec. 3. How Bailment Differs From Sale There is a sale whenever ownership passes. In a bailment ownership does not pass. A bailment may be involved in a sa...
-Chapter 2. Rights And Obligations Of Ordinary Bailees
Sec. 5. Bailee's Duty Of Care An ordinary bailee is not an insurer, and is only bound to use such care in keeping the goods as under the circumstances of the case amounts to reasonable care. In ...
-Chapter 3. Extraordinary Bailees
Sec. 9. Public Service Businesses A business which peculiarly serves the public is subject to the peculiar regulation of the state and is known as a public utility or public service business. Histo...
-Extraordinary Bailees. Continued
Sec. 13. Common Carrier's Duty To Transport Goods Safely The rule of the common law was that the carrier of goods undertook an absolute duty to carry and deliver safely, unless harm befell by Act o...
-Chapter 4. Bills Of Lading And Warehouse Receipts
Sec. 16. Documents Of Title Defined A document of title is a document issued by a carrier or warehouseman reciting the receipt of goods for carriage or keeping and the terms and conditions thereof....
-Subdivision II. Sales Of Personal Property. Part I. Formation Of Contract Of Sale. A. Definitions And Distinctions. Chapter 5. Definition And General Nature
Sec. 26. Definitions A sale of goods is an agreement whereby the seller transfers the property in goods to the buyer for a consideration called the price. A contract to sell goods is a contract ...
-B. Form Of Contract
Sec. 30. Sale In Writing; Oral; Or Implied Subject to the provisions of this act and of any statute in that behalf, a contract to sell or a sale may be made in writing (either with or without seal...
-B. Form Of Contract. Continued
Sec. 33. Statute Of Frauds No Defense If Payment Has Been Made In Whole Or In Part If there has been a payment by the buyer the contract is enforceable by or against him though it is otherwise unex...
-Chapter 6. Parties And Subject Matter
Sec. 37. Parties To Sales The capacity of parties to sales is governed entirely by the general law of contract. Reference is made to the general law of contract as to capacity of parties to sale...
-Chapter 7. The Contract's Obligations As Affected By Warranties
Sec. 41. Definition Of Warranty A warranty is a part of the contract of sale. It consists in the assertion of some fact concerning the goods put forth to induce the contract and which did induce it...
-A. Express Warranties
Sec. 42. What Constitutes Express Warranty Any affirmation of fact or any promise by the seller relating to the goods is an express warranty if the natural tendency of such affirmation or promise ...
-Express Warranties. Part 2
Sec. 45. Generally Of The Implied Warranties Under the law of sales, warranties of an implied nature arise, from different classes of fact, unless negatived by the agreement of the parties. Unde...
-Express Warranties. Part 3
Sec. 48. The Implied Warranties In A Sale By Description In a sale by description there is (1) an implied warranty that the goods shall correspond with the description; (2) that the goods are merch...
-A. Express Warranties. Part 4
Sec. 50. The Implied Warranty Of Fitness For Purpose Bought Where goods are purchased for a particular purpose which is expressly or by implication made known to the seller there is an implied warr...
-Express Warranties. Part 4
Sec. 52. Right Of Remote Purchaser To Sue In Tort A remote purchaser of an article may sue the manufacturer or producer thereof for injuries sustained by him in cases in which such manufacturer or ...
-Part II. The Contract's Effect As Transferring Title. Chapter 8. Transfer Of Title Between Buyer And Seller, When Rights Of Third Parties Not Involved
Sec. 53. Meaning Of Phrase Transfer Of Title In every complete sale there is a certain moment of time wherein the ownership of the goods by the seller ceases and that of the buyer begins; therein ...
-Transfer Of Title Between Buyer And Seller, When Rights Of Third Parties Not Involved. Part 2
Sec. 57. Rules For Ascertaining Intention Of The Parties SECOND RULE. Unless a different intention appears where there is a contract to sell specific goods, and the seller is bound to do something...
-Title Transfer Between Buyer And Seller, When Rights Of Third Parties Not Involved. Part 3
Sec. 59. Rules For Ascertaining The Intention Of The Parties FOURTH RULE. Unless a different intention appears (1) where there is a contract to sell unascertained or future goods by description, a...
-Chapter 9. Title And Third Persons
Sec. 63. Attempted Sale By One Not Owner: In General If goods are sold by one not the owner thereof, no title is acquired by the purchaser unless the real owner is estopped to assert his own title....
-A. When True Owner Not Estopped To Assert Title
Sec. 64. In General Against third persons an owner of goods by merely investing another with their possession for a lawful purpose is not thereby estopped to assert his title against any one claimi...
-B. When True Owner Estopped To Assert Title Against Third Persons
Sec. 67. In General Where other than by mere possession the owner authorizes or permits another to deal with the goods as his own, he may be estopped to assert his ownership as to one who has dealt...
-C. When True Owner Prevented By Statute From Asserting Title
Sec. 70. In General The law may prevent an owner from asserting his title; and statutes are in force in respect to (1) sales in which the seller retains possession; (2) conditional sales; (3) bulk ...
-Part III. The Performance Of The Contract. Chapter 10. Obligations Of The Parties
Sec. 76. In General The obligations of the parties, being contractual in nature, are governed by the general law of contracts. Each in accordance with his contract is bound to perform, unless by so...
-Chapter 11. Rights Of Seller Upon Non-Performance
Sec. 83. Enumeration Of Rights And Remedies Of Unpaid Seller A. Where Goods Have Not Been Delivered to Buyer. (a) If title has not passed: (1) A right to withhold delivery; (2) A right to ...
-A. Where Goods Have Not Been Delivered To Buyer (Title Passed)
(a) If title has not passed. Sec. 86. Goods Not Delivered, Title Not Passed, Right To Withhold Delivery Or Rescind Contract If the title has not passed and the goods have been sold without credi...
-B. Where Goods Have Been Delivered To Buyer Or His Agent
(a) Where title has not passed. Sec. 93. Right To Sue For Price Or Damages If the goods have been delivered to the buyer or his agent, and title has not yet passed, and the buyer is in default, ...
-Chapter 12. Rights Of Buyer Upon Non-Performance
Sec. 98. Enumeration Of Rights And Remedies Of Buyer A. Where Goods Have Not Been Delivered to Buyer. (a) Where title has not passed: (1) Right to damages; (2) Right to specific performance i...
-A. Where Goods Have Not Been Delivered To Buyer
(a) Where title has not passed. Sec. 99. Goods Not Delivered, Title Not Passed, Buyer's Right To Sue For Damages The buyer in such a situation must always sue for damages, except as noted in the...
-B. Where Goods Are Delivered Or Tendered To Buyer
(a) Right to refuse acceptance for breach of warranty. Sec. 102. Goods Tendered To Buyer, Right To Refuse Acceptance For Breach Of Warranty If the goods which are tendered to the buyer do not co...
-Appendix A. Uniform Sales Act
(Note: The following Act was recently drafted by the Commissioners on Uniform State Laws, and recommended for passage by the different states. It does not seek in any substantial way to change existin...
-Part I. Formation Of The Contract
Section I. (Contracts to Sell and Sales.) (1) A contract to sell goods is a contract whereby the seller agrees to transfer the property in goods to the buyer for a consideration called the price. (...
-Part I. Formation Of The Contract. Continued
The Price. Section 9. (Definition and Ascertainment of Price.) (1) The price may be fixed by the contract, or may be left to be fixed in such manner as may be agreed, or it may be determined by the...
-Part II. Transfer Of Property And Title. Transfer Of Property As Between Seller And Buyer
Section 17. (No Property Passes until Goods are Ascertained.) Where there is a contract to sell unascertained goods no property in the goods is transferred to the buyer unless and until the goods are ...
-Transfer Of Title
Section 23. (Sale by a Person Not the Owner.) (1) Subject to the provisions of this act, where goods are sold by a person who is not the owner thereof, and who does not sell them under the authority o...
-Part III. Performance Of The Contract
Section 41. (Seller Must Deliver and Buyer Accept Goods.) It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract t...
-Part IV. Rights Of Unpaid Seller Against The Goods
Section 52. (Definition of Unpaid Seller.) (1) The seller of goods is deemed to be an unpaid seller within the meaning of the act (a) When the whole of the price has not been paid or tendered. (b) ...
-Unpaid Seller's Lien
Section 54. (When Right of Lien May Be Exercised.) (1) Subject to the provisions of this act, the unpaid seller of goods who is in possession of them is entitled to retain possession of them until pay...
-Stoppage In Transitu
Section 57. (Seller May Stop Goods on Buyer's Insolvency.) Subject to the provisions of this act, when the buyer of goods is or becomes insolvent, the unpaid seller who has parted with the possession ...
-Resale By The Seller
Section 60. (When and How Resale May Be Made.) (1) Where the goods are of a perishable nature, or where the seller expressly reserves the right of resale in case the buyer should make default, or wher...
-Rescission By The Seller
Section 61. (When and How the Seller May Rescind the Sale.) (1) An unpaid seller having a right of lien or having stopped the goods in transitu, may rescind the transfer of title and resume the proper...
-Part V. Actions For Breach Of The Contract. Remedies Of The Seller
Section 63. (Action for the Price.) (1) Where, under a contract to sell or a sale, the property of the goods has passed to the buyer, and the buyer neglects or refuses to pay for the goods according t...
-Remedies Of The Buyer
Section 66. (Action for Converting or Detaining Goods.) Where the property in the goods has passed to the buyer and the seller wrongfully neglects or refuses to deliver the goods, the buyer may mainta...
-Part VI. Interpretation
Section 71. (Variation of Implied Obligations.) Where any right, duty or liability would arise under a contract to sell or a sale by implication of law, it may be negatived or varied by express agreem...
-Appendix B. Uniform Bills Of Lading Act
(Adopted in Alaska, Connecticut, Idaho, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, New Hampshire, New Jersey, New York, Ohio, Pennsylvani...
-Appendix B. Uniform Bills Of Lading Act. Part 2
(b) Had information at the time of the delivery that it was to a person not lawfully entitled to the possession of the goods. A request or information to be effective within the meaning of this sec...
-Appendix B. Uniform Bills Of Lading Act. Part 3
SEC. 24. If goods are delivered to a carrier by the owner or by a person whose act in conveying the title to them to a purchaser for value in good faith would bind the owner and a negotiable bill is i...
-Appendix B. Uniform Bills Of Lading Act. Part 4
In the case of an assignment of a claim secured by a bill, the liability of the assignor shall not exceed the amount of the claim. SEC. 36. The indorsement of a bill shall not make the indorser lia...
-Appendix B. Uniform Bills Of Lading Act. Part 5
SEC. 44. Any officer, agent, or servant of a carrier, who with intent to defraud issues or aids in issuing a bill knowing that all or any part of the goods for which such bill is issued have not been ...
-Appendix C. Forms
Page 1. Bill of Sale............................................ 187 2. Memorandum of Sale.................................. 188 3. Chattel Mortgage....................................... 189 ...
-1. Bill Of Sale
KNOW ALL MEN BY THESE PRESENTS, that Henry Sampson of the City of Chicago in the County of Cook and State of Illinois, party of the first part, for and in consideration of the sum of Four Hundred and ...
-2. Memorandum Of Sale
(Note: As stated in the text, it is not necessary to put contracts of sale in writing except as required by the statute of frauds. If there is delivery of all or part, or payment of all or part of the...
-3. Chattel Mortgage
(As a chattel mortgage is so often given in sale transactions, to secure a portion or all of the purchase price, a form is here given. It is better to use the printed blanks to be secured of the stati...
-4. Chattel Mortgage Note
$........ ............................191.. ........after date for Value Received,........promise to pay to the Order of........the sum of........Dollars, at........ with interest thereon at the...
-5. Order Bill Of Lading
Original These Railroads do not accept for transportation Money, Gold, Silverware, Shipper's No........ Valuable Papers or Painting's nor any articles of extraordinary value unless special arran...
-Order Bill Of Lading. Continued
SEC. 3. No carrier is bound to transport said property by any particular train or vessel, or in time for any particular market, or otherwise than with reasonable despatch, unless by specific agreement...
-Appendix D3. Questions And Problems
Chapter 1 1. Define bailment. 2. Classify bailments. 3. State Examples 2 and 3. 4. Various farmers delivered wheat to a mill and received in return a certificate reading as follows: Ced...
-Appendix D3. Questions And Problems. Continued
37. A sells B a car stating that it is a 1912 model. It is not a 1912, but an earlier model. Is A's statement a warranty? (Morris v. Flat Motor Sales Co. of Calif., 162 Pac. 663. [Cal.]). 38. A sol...
-Negotiable Paper. Part I. General Nature And History. Chapter 1. General Description Of Negotiable Paper
Sec. 1. Meaning Of The Word Negotiable By the term negotiable as applied to obligations to pay money is denoted a quality by virtue of which the obligation so described is assignable at law by t...
-Chapter 2. Negotiability Of Various Instruments. A. General Types Of Instruments Governed By Negotiable Instruments Law
Sec. 3. Promissory Notes Promissory notes are promises to pay money and are negotiable when drawn as required by the negotiable instruments law. Promissory notes are defined in the Uniform Negot...
-B. Special Forms Of Bills, Notes And Checks
Sec. 6. In Explanation The above described instruments - bills of exchange, promissory notes and checks - are in commercial life for all practical purposes all of the kinds of negotiable paper. The...
-C. Documents Of Title Made Negotiable By Statute But Not Governed By The Negotiable Instruments Law
Sec. 11. Bills Of Lading And Warehouse Receipts Bills of Lading and Warehouse Receipts may be drawn to order or to bearer in which event they have a quality of negotiability, but they are not instr...
-D. Sundry Instruments Assignable But Not Negotiable
Sec. 12. Certificates Of Corporate Stock A stock certificate is an instrument issued by a corporation reciting that the bearer or person named therein is the owner of the number of shares in the co...
-E. The Instruments Within The Scope Of This Text
Sec. 14. The Negotiable Instruments Herein Considered The negotiable instruments hereinafter discussed are only those properly falling under the uniform negotiable instruments law, that is, bills, ...
-Chapter 3. History And Origin Of Negotiable Paper
Sec. 15. Continental Origin And Adoption In England Bills of exchange originated among the Florentine and Venetian merchants. They came into use in England and with promissory notes became negotiab...
-Part II. The Formation Of The Contract. Chapter 4. Expression - Negotiable Form. 1. Formal Requisites
Sec. 17. In General Certain elements are required by law to be present in any instrument, as essential to negotiability. While it cannot be said that there are any particular words, exclusively nec...
-Requisite A. "It Must Be In Writing And Signed By The Maker Or Drawer."
Sec. 18. Writing And Signature Writing and signature of maker or drawer are essential to negotiability. Our natural conception of a negotiable instrument is that of a written paper. Writing...
-B. "Must Contain An Unconditional Promise Or Order."
Sec. 19. Unconditional Promise Or Order An instrument to be negotiable must contain an unconditional promise or order. (1) In general. A promissory note must contain an absolute promise, a ...
-C. "... To Pay A Sum Certain In Money."
Sec. 20. Sum Certain Certainty of the sum payable determinable from the language of the instrument itself, is essential to negotiability. (1) In general The instrument must be to pay money w...
-D. Must Be Payable On Demand Or At A Fixed Or Determinable Future Time
Sec. 22. Demand Paper A negotiable instrument may be payable on demand. Instruments to be negotiable must be payable on demand or at a fixed or determinable future time. What is demand paper?...
-E. "Must Be Payable To Order Or To Bearer."
Sec. 24. In General An instrument is not negotiable unless it contains words of negotiability. An instrument to be negotiable must be payable to order or to bearer. Sec. 25. When Payable ...
-F. "Where The Instrument Is Addressed To A Drawee, He Must Be Named Or Otherwise Indicated Therein With Reasonable Certainty."
Sec. 27. Meaning Of Provision This provision refers to bills of exchange and checks. The drawee must be named or otherwise indicated in the instrument itself with reasonable certainty. 51. Wit...
-Chapter 5. Expression - Negotiable Form. 2. Provisions Not Requisite Which Do Not Prevent Negotiability
Sec. 28. In General In the preceding chapter the form requisite to negotiability was considered. In the present chapter we may consider what nonrequisite provisions may be included without destroyi...
-Chapter 6. Execution And Delivery
Sec. 37. Delivery Essential The delivery of an instrument is essential to its taking effect. Delivery consists in any giving over into the control of the other party for the purpose of having it ef...
-Chapter 7. Consideration For Execution.66
Sec. 42. Necessity Of Consideration Every negotiable instrument to be enforceable between the parties must be supported by a consideration. But lack of consideration cannot be availed of against a ...
-Chapter 8. The Formation Of The Contract Of The Acceptor
Sec. 47a. In General A bill of exchange is, as has been noted, an order drawn by one person upon another in favor of a named payee, or order, or of bearer. Such person upon whom the order is drawn ...
-Chapter 9. The Formation Of The Contract Of Parties For Accommodation Or For Honor
Sec. 54. Accommodation Party Defined One who becomes a party to a negotiable instrument in order to lend his credit to another is called an accommodation maker, drawer, indorser, or acceptor as the...
-Part III. Operation Of The Contract. Chapter 10. Negotiation. A. In General Of Negotiation And Indorsement
Sec. 57. Meaning Of Negotiation By negotiation is meant the transfer of negotiable paper by the payee thereof or his transferee with the intention and effect of constituting the transferee the hold...
-B. Kinds Of Indorsements
Sec. 64. Special Indorsement A special indorsement is one which specifies a particular indorsee. An indorsement to a certain person naming him in the indorsement is called a special indorsement....
-Chapter 11. Holder In Due Course
Sec. 69. Introduction A person to whom negotiable paper is negotiated may have a right to enforce it according to its tenor notwithstanding his predecessor in title had no such right to enforce it,...
-Holder In Due Course. Part 2
Sec. 72. Transferee Must Give Value In order to be a holder in due course, a transferee of negotiable paper must give value. (1) Giving value necessary only in case one seeks to qualify as holde...
-Holder In Due Course. Part 3
Sec. 73. Transferee Must Take In Good Faith To be a holder in due course, a transferee of negotiable paper must acquire it in good faith. (1) In general. If a purchaser has actual notice of a...
-Holder In Due Course. Part 4
Sec. 74. Transferee Must Acquire Instrument Before Overdue To be a holder in due course a transferee must acquire the paper before it is overdue. (1) In general. If paper is overdue, it conti...
-Holder In Due Course. Part 5
Sec. 75. Indorsement Requisite Where one's legal title is not complete (paper not payable to bearer) except upon indorsement, he is not a holder in due course until such indorsement has been made. ...
-Chapter 12. Defenses Against Holder In Due Course. A. Defenses Not Available Against Holder In Due Course-Personal Defenses
Sec. 79. In General It has been seen that to accord circulability to an obligation to pay money, which is one of the chief objects of the law of negotiable paper, it must be established that a pape...
-B. Defenses Available Against Holder In Due Course - Real Defenses
Sec. 90. Real Defenses Defined A real defense is one good against any one whether holder in due course or not. There are some defenses good even against a holder in due course. They are called r...
-Chapter 13. The Obligations Of The Parties.124
Sec. 96. Of Maker Of Note The maker's contract is to pay the note, according to its tenor, to the payee, or his transferee. He cannot deny the payee's existence or his then capacity to indorse. His...
-Chapter 14. Presentment For Payment And For Acceptance
Sec. 105. General Statement In order to fix the liability of parties secondarily liable on a negotiable instrument, it is necessary to take certain steps provided by law for the benefit of such par...
-A. Presentment For Payment At Maturity To Parties Primarily Liable
Sec. 106. Not Necessary To Charge Parties Primarily Liable Presentment of a note to the maker thereof, or of an accepted bill to the acceptor thereof, is not necessary to charge such parties. They ...
-B. Presentment Of Bill For Acceptance.146
Sec. 110. Presentment For Acceptance Necessary In Certain Cases To Charge Drawer And Indorsers In order to charge the drawer, presentment for acceptance to the drawee is necessary (except where exc...
-Notice Of Dishonor
Sec. 114. Notice Of Dishonor Necessary To Charge Drawer And Indorser Notice to the drawer of a bill or check and to the indorser of a bill, check or note, that it has been dishonored by non-payment...
-Chapter 16. Protest
Sec. 119. Protest Necessary To Charge Drawer And Indorser On Foreign Bill Where a foreign bill is dishonored by non-acceptance or nonpayment it must be protested; otherwise the drawer and in-dorser...
-Part IV. Discharge Of Negotiable Instruments. Chapter 17. Manner And Effect Of Discharge
Sec. 123 MEANING OF TERM DISCHARGE. A contract is discharged when it loses its force and effect as a legal obligation. A discharged contract is one which for some reason is no longer in force....
-Part V. Added Chapters On Banks And Suretyship. Banks And Banking. A. Definitions
Sec. 129. Banks Defined A bank is an institution which borrows and loans money and deals in negotiable securities and keeps money on deposit. A banker is one who conducts a banking business. Banks,...
-B. The Bank As A Corporation
(a) Organization. Sec. 130. Procedure To Incorporate The procedure to incorporate is regulated by the banking act - national or state. The steps requisite to incorporation are determined by t...
-B. The Bank As A Corporation. Part 2
Sec. 137. Rights Of Stockholders Stockholders in a bank have the same general rights that obtain in other corporations. The right to hold meetings, to inspect the books, to receive dividends, is...
-B. The Bank As A Corporation. Part 3
Sec. 139. The Bank President The bank president by virtue of his office, has the authority to represent the bank in a general way, and to conduct its litigation and employ counsel. By custom or usa...
-B. The Bank As A Corporation. Part 4. A. Investments
Sec. 143. Investments In Real Estate A bank has no power to deal in real estate, except for incidental purposes. It cannot invest in real estate for the mere purpose of investment. The banking laws...
-B. The Bank As A Corporation. Part 5. B. Deposits
Sec. 146. The Depositor A Creditor A depositor is a creditor of the bank. The funds deposited, unless specially deposited, are funds loaned to the bank. The depositor loses his ownership of such fu...
-B. The Bank As A Corporation. Part 6
Sec. 149. The Bank's Undertaking With The General Depositor The bank's undertaking with a general depositor, that is, one having a general checking account, is to pay the depositor or his order on ...
-B. The Bank As A Corporation. Part 7. C. Loans, Collections, Etc.
Sec. 151. Loans And Discounts To loan money is one of the principal functions of a bank, and it may loan on any sort of security except as forbidden by law, and in any amount except as restricted b...
-B. The Bank As A Corporation. Part 7. D. Failure And Dissolution
Sec. 156. Bank Failures The bank fails when its assets are not sufficient to pay its liabilities. In this section the results of bank failure are briefly discussed. Failed banks are closed up...
-Chapter 19. Guaranty And Suretyship
Sec. 158. Guaranty And Suretyship Defined By the terms guaranty and suretyship we indicate that one person has agreed with a creditor or promisee of another person to be responsible for the deb...
-Guaranty And Suretyship. Part 2
Sec. 162. Consideration In Guaranty A guaranty must be supported by a consideration, which usually consists in extension of credit. As every simple contract must be supported by a considerat...
-Guaranty And Suretyship. Part 3
Sec. 166. Re-Imbursement And Exoneration Of Surety Or Guarantor The right of re-imbursement is the right of the surety to be re-imbursed for payments made by him; the right of exoneration is the ri...
-Guaranty And Suretyship. Part 4
Sec. 169. Various Causes Discharging The Surety (1) By discharge of principal's debt. When the debt of the principal is discharged, the surety's obligation also falls. As a general rule, anyt...
-Appendix B. Forms
(NOTE: The forms in this series of books are not numerous owing to the belief of the author that they serve no useful purpose, and may in fact be misleading, as it is very clear that there is no way t...
-Questions And Problems
Chapter One 1. What three qualities had negotiable paper which distinguished it from simple contracts under the common law? 2. What is negotiability? Chapter Two 3. Define a promissory not...
-Questions And Problems. Part 2
50. The R. T. Company gave the following note in payment for goods purchased: Albany, N. Y., June 1, 1920. $7,500. Three months after date we promise to pay to order of A. B. Corporation Seventy...
-Questions And Problems. Part 3
95. M desiring to remember P after his death, gives P a note to P's order. P sells it to H who knows nothing of its origin. P dies and the note is presented for payment. If H is a holder in due course...
-The Law Of Property. Part I. Introductory. Chapter I. Definitions And Distinctions
Sec. 1. The Term Property Defined The word property is used in two senses: to indicate the right and interest which a person has in anything which the law makes the subject of ownership, and se...
-A. The Division Of Property Into Real And Personal Property
Sec. 2. Real Property And Personal Property Defined The term real property signifies that property which is of a fixed, immovable nature. The term personal property signifies property which in its ...
-B. The Division Of Real Property Into Lands, Tenements And Hereditaments
Sec. 4. In General Blackstone 4 stated that things real are usually said to consist in lands, tenements or hereditaments. There is little if any practical distinction between tenements and hered...
-C. Division Of Personal Property Into Tangible And Intangible Personal Property
Sec. 7. In General Personal property includes all tangible objects (not classified as real property) and all intangible rights not classified as real property. We have already considered that re...
-Chapter 2. History Of The Law Of Property
Sec. 10. Ancient Laws Of Property The laws of property from early until modern times were based upon feudalism, and in our law, even to-day, we see the influences of feudalism though the system its...
-Part II. Whether Certain Property Is Real Or Personal. Chapter 3. Things Annexed To The Land, The Law Of Fixtures. A. The Manner Of Annexation
Sec. 14. Introductory It has been seen that the term land comprehends not only the earth but things that are attached thereto. Popularly, as well as technically, this is understood. When we speak...
-Things Annexed To The Land, The Law Of Fixtures. A. The Manner Of Annexation. Continued
Clearly all buildings will pass, as will the fences, the pumps, the windmills, the walks and other improvements; as will all things that are part of such things, as shutters and screens, although perh...
-Chapter 4. Increase Of The Earth
Sec. 22. This Term Defined By increase of the earth we mean the product which grows thereupon either with or without man's assistance. We are to consider in this chapter the character of those t...
-Chapter 5. Water And Ice, Etc
Sec. 29. Character Of Water As Personal Or Real Water is real property while in ponds, rivers, etc., but becomes personal property upon being piped out or bottled or in any way separated from the s...
-Part III. The Acquisition Of Title To Personal. Property. Chapter 6. A. Acquisition by Purchase
Sec. 32. In General The title to personal property may be transferred by sale from one owner to another. By the word sale we mean the transfer of ownership of personal property from one person...
-B. Acquisition By Gift
Sec. 33. Gift Defined A gift may be defined as a transfer of ownership of personal property without consideration. A gift is a transfer without consideration. There may be a valid contract to ma...
-C. Acquisition By Finding
Sec. 39. Difference Between Lost Property And Mislaid Property Lost property is that which has been dropped by the owner, while mislaid property is that which has been put in a certain place and th...
-D. Acquisition Of Title To Personal Property By Reduction To Ownership
Sec. 42. Property Without Ownership; Wild Animals, Etc Animals of a wild nature and any property which has been abandoned by the former owner may be made the subject of ownership by reduction to po...
-E. Acquisition Of Title To Personal Property By Confusion And Accession
Sec. 43. Confusion Defined Confusion consists in the mixture of goods belonging to different persons so that the property of each cannot be identified from that of the others.53 We now consider ...
-Part IV. Estates In Real Property. Chapter 7. Classification Of Estates In Real Property
Sec. 47. General Statement An estate in land is that duration of ownership which one has therein. A person may own property absolutely or own a limited estate therein. There are many estates. Fr...
-Chapter 8. Estates In Fee
Sec. 49. The Fee Simple Defined Tenant in fee simple (or as he is frequently styled, tenant in fee) is he that hath lands, tenements or hereditaments to hold to him and his heirs forever, generall...
-Estates In Fee. Continued
Sec. 53. Qualified And Base Fee Simples A qualified or base fee simple is a fee upon condition or subject to a qualification. It is possible to hold a fee and yet hold it in a qualified or condi...
-Chapter 9. The Life Estates Of Dower And Curtesy
Sec. 55. Dower Defined Dower is a life estate which a widow has in one-third of the lands of which the husband was seized during coverture. The estate of dower is often misunderstood. Many perso...
-Chapter 10. Conventional Life Estates
Sec. 59. Definition A conventional life estate is an estate created by deed or will, and may be for the tenant's own life or the life of another. An estate by dower or curtesy is a life estate a...
-Chapter 11. Estates Less Than Freehold. Landlord And Tenant
Sec. 66. Introductory In this chapter we will consider the estates less than freehold, and that subject involves a consideration of the rights of landlord and tenant. The estates which are less ...
-Estates Less Than Freehold. Landlord And Tenant. Continued
Sec. 72. Duty Of Landlord In Respect To Condition And Care Of Premises The landlord is under no duty to furnish the premises fit for any particular purpose; and is under no duty in respect to the c...
-Chapter 12. Estates In Remainder And Reversion, And Executory Devises
Sec. 76. Estates In Remainder; Two Sorts Remainders are the parts of the fee that remain out after the termination of a particular estate and are of two kinds - vested and contingent. Where the ...
-Chapter 13. Several And Joint Ownership Of Estates
Sec. 84. Introductory Titles may be held jointly by a number of persons or by one person in severalty. We have been considering how an estate may be in fee or for life or for a term of years, et...
-Chapter 14. Estates Owned Legally Or Equitably - Uses And Trusts
Sec. 90. In General The law permits one person to hold legal title to property upon obligations to use it in declared ways for the benefit of another, that is, one may have the legal title, while a...
-Estates Owned Legally Or Equitably - Uses And Trusts. Continued
Sec. 95. The Creation And Evidence Of The Trust The trust may be created by deed, will, or contract, and if in real property cannot be enforced unless declared in writing by the party legally capab...
-Chapter 15. Absolute And Conditional Estates
Sec. 103. In General Estates may be held in absolute title, or upon a condition that may defeat them. One may convey an estate absolutely or upon condition. A condition may be precedent, keeping...
-Chapter 16. Estates In Mortgage. A. The Nature And History Of The Mortgage
Sec. 104. Mortgage Defined EARLY VIEW AND HISTORY. A real estate mortgage at common law was a conveyance of the legal title subject to a condition subsequent that the mortgagor might revest the tit...
-B. The Creation Of The Mortgage
Sec. 106. The Form Of A Mortgage Deed The deed or mortgage is in form a conditional conveyance of the fee. By reference to the form in the appendix the modern form of a mortgage deed may be seen...
-C. Provisions In Mortgage Deeds
Sec. 110. The Power Of Sale In Mortgages And Trust Deeds The mortgage or trust deed usually contains a power of sale whereby the mortgagee or trustee can foreclose the mortgage except in some state...
-D. Incidents Of A Mortgage
Sec. 114. Right Of Possession The right of possession is in the mortgagor unless agreed otherwise though by the common law it was in the mortgagee. Who shall have the right of possession depends...
-E. Sale Of The Mortgaged Property And Transfer Of The Debt
Sec. 116. Sale Subject To Debt A sale of premises by the mortgagor cannot deprive the mortgagee of his lien if the mortgage is properly recorded, but as between the mortgagor and the buyer, the buy...
-F. The Remedies Of The Mortgagee
Sec. 118. Injunction To Prevent Waste The mortgagee may have an injunction to prevent waste by a mortgagor in possession. Where a mortgagor is in possession of the property we have seen that it ...
-G. The Remedies Of The Mortgagor
Sec. 123. Redemption From The Mortgage The mortgagor may redeem from the mortgage by applying to a court of equity offering to pay the debt with accrued interest and costs. We have already seen ...
-H. Junior Mortgages
Sec. 125. Rights Of Subsequent Mortgagees Assuming that a mortgagee has protected his security by record or otherwise, subsequent mortgagees take a lien which is subject to the first mortgage, each...
-Part V. Boundaries; And Rights In Another's Lands. Chapter 17. Boundaries And Riparian Rights Sec. 126. In General
The inquiry to be made here is as to the territorial extent of ownership, i. e., what are the boundaries of the land. There may be, in any particular case, no difficulty, unless it be merely of survey...
-Chapter 18. Proprietary Rights In The Land Of Another. A. Easements And Profits
Sec. 130. Easements Defined An easement may be defined as a right which a person has by grant or proscription to have a certain enjoyment or use in land of another in which he has no estate of poss...
-B. Right To Lateral Support
Sec. 137. Statement Of The Right Every owner of land, has the right to have it supported in its natural state by the adjoining land or by artificial supports supplied in place thereof. 93. See B...
-Part VI. Of The Acquirement Of Title Except By Deed, Will, And Descent. Chapter 19. Various Ways Of Acquiring Title Other Than By Deed, Will, Or Descent. A. Title By Prescription And Adverse Possession
Sec. 139. In General A title to real property may be acquired by long continued occupation of an adverse character. One may acquire title to real estate by a possession adverse to that of the ow...
-B. Title By Escheat And Forfeiture
Sec. 143. Meaning Of Escheat And Forfeiture An estate was forfeited to the king for various reasons. It is said to escheat when there is no heir. There is no such thing as forfeiture of estate in t...
-C. Title By Accretion
Sec. 144. Title By Accretion Defined Title by accretion is the title that a riparian owner acquires by gradual additions to his lands by the action of the water. One who has land bounded by wate...
-Part VII. Of Title By Deed. Chapter 20. The Capacity Of Parties To Grant And To Receive By Deed
Sec. 146. Corporations A corporation has the general capacity to receive and to grant real estate. The powers of a corporation depend upon its charter and as far as the state is concerned a corp...
-Chapter 21. Of The Various Classes Of Deeds
Sec. 151. The Ancient English Deeds The ancient English deeds were the original deeds of feofment, gift, grant, lease, exchange and partition; and the derivative deeds of release, confirmation, sur...
-Chapter 22. The Parts And Essentials To Deeds
Sec. 154. Formal Parts A deed has certain orderly and formal parts but is now of a simpler nature than it used to be. A deed is said to have these following parts: first, the premises, which set...
-Chapter 23. Restrictions In Deeds Upon The Use Of Property Conveyed
Sec. 160. What Restrictions Permitted The law permits restrictions as to the use of the land so long as the restriction is not against public policy. Restrictions in the use of land are not enco...
-Part VIII. Title By Descent And By Will. Chapter 24. Title By Descent
Sec. 166. Explanation Upon a person's death, the law designates to whom his property shall pass; but extends to a person the right to direct the disposition by a direction, called a will, to take e...
-Chapter 25. Title By Will. A. Definition And Kinds Of Wills
Sec. 170. Will Defined A will is a disposition of one's property to take effect at his death. A supplemental addition to the will is called a codicil. The law permits one to direct how his prope...
-B. Of The Capacity To Make A Will
Sec. 172. Minors A person under age cannot make a will. The right to make a will is entirely statutory and generally speaking, it is requisite that the party must be of full age in order to make...
-C. Wills Secured By Fraud, Undue Influence, Etc
Sec. 175. Wills Or Devises Secured Through Fraud Gifts secured through fraud are void. Where through fraudulent representations a gift is secured which otherwise would not have been made, as whe...
-D. The Formal Requisites
Sec. 178. Will Must Be In Writing A will must be in writing but there is an exception in case of a gift of personal property in one's last illness. It is the general rule that a will must be in ...
-E. The Orderly Parts Of Wills
Sec. 182. In General A will does not have to be in any special form but is usually drawn in a certain orderly way. We will find that if a will is in writing and signed by the testator and proper...
-F. The Revocation Of Wills
Sec. 189. The Right To Revoke A will may be revoked at any time before the testator's death unless he is under contract not to revoke. A will is a revocable instrument. It confers no rights exce...
-Chapter 26. Administration Of Estates. A. Starting The Administration
Sec. 191. In General When a person dies, his estate must be disposed of to those who, as creditors, or as heirs and distributees, or as beneficiaries under a will, are entitled thereto. This requir...
-B. The Title Of The Personal Representative
Sec. 201. Nature Of Office The office of the personal representative is that of a trustee who succeeds to the title of the deceased in respect to personal property. The personal representative i...
-C. Duties And Liabilities
Sec. 204. Duty To Get In Assets It is the duty of the personal representative to get in all assets of the estate, bringing suit where necessary. An executor or administrator should collect the a...
-D. Payment Of Claims
Sec. 206. Proof Of Claims If there is any doubt about a claim against an estate, the executor should require it to be proved. Creditors must prove their claims against the estate, unless allowed...
-E. Settlement And Final Account
Sec. 208. Payment Of Legacies Legacies are payable as provided for in the will if the estate is sufficient to pay same. Legacies are specific, as a watch, a horse, or a chair; general, as a sum ...
-Part IX. Chapter 27. Conveyancing. A. Contracts To Sell Real Estate
Sec. 210. How Real Estate Is Usually Sold Real estate is usually sold by first drawing up a contract between the prospective seller and buyer providing that the seller will sell on certain terms an...
-Conveyancing. A. Contracts To Sell Real Estate. Continued
Sec. 213. Burdens Assumed By Purchaser The purchaser often specifically assumes certain burdens as mortgages, building restrictions, special assessments yet unpaid, etc. We have already noticed ...
-B. Abstracts Of Title And Guaranty Policies
Sec. 215. The Abstract Defined The abstract consists in a brief memoranda of all records affecting the title of the real estate in question. We know that in the country recording laws provide fo...
-C. The Torrens System Of Registering Titles
Sec. 219. The Torrens System Defined The Torrens system is a system whereby titles to real estate are registered as being in a certain person at the date of registration and a certificate of title ...
-D. Remedies Of The Purchaser And Seller
Sec. 221. In General The purchaser of real estate has two general remedies where the seller refuses to convey according to the contract. Considering now the case of a purchaser of real estate un...
-Appendix A. Forms. 1. Contract Of Sale Of Real Property
(The following form which has been filled in by the editor is one of those in use in Cook County, Illinois. It was approved by the Chicago Real Estate Board, February 4, 1903, and is copyrighted. It i...
-2. Opinion Of Title
William H. Jones Attorney And Counselor At Law 25 North Dearborn Street Chicago Mr. Alfred W. Bays, Chicago, Ill. Dear Sir: I have examined the abstract of title to the property desc...
-3. Warranty Deed - Statutory Form
. (Illinois.) THIS INDENTURE WITNESSETH, that the Grantor of the..............................in the County of.......... and State of.........................................for and in consideratio...
-4. Deed Statutory Form
(NEW York.) NEW YORK: Statutory Form of Deed with full Covenants. This indenture, made the...............Day of........... in the year nineteen hundred and............, between........., of ...
-5. Quitclaim Deed Statutory Form
(Illinois.) THIS INDENTURE WITNESSETH, That the Grantor of the........................in the County of................ and State of...........................for the consideration of .............
-6. Form Of Acknowledgment For Corporation
State of Illinois 1 [ss. County of Cook J On this................day of......................, 19..... before me appeared.....................and........,....., both to me personally known, w...
-7. Mortgage Statutory Form
(Illinois.) THIS INDENTURE WITNESSETH, That the Mortgagor of the........................in the County of............and State of.........................Mortgage.. .and Warrant.. .to of the Cou...
-8. Assignment Of Mortgage
KNOW ALL MEN BY THESE PRESENTS, That. the part...of the first part, in consideration of the sum of ...................................................... Dollars, lawful money of the United Stat...
-9. Power Of Sale In Mortgage Or Trust Deed
This grant is intended as a security for the payment of the sum of..................dollars, in.......................'years from the date of these presents, with interest thereon at the rate of.........
-10. Trust Deed - Statutory
. (Under Illinois Law of 1879.) THIS INDENTURE WITNESSETH, That the Grantor, of the..................in the County of............and State of..............................for and in consideration of t...
-11. Long Form Of Trust Deed
(Illinois.) THIS INDENTURE, Made this........................day of..............................in the year of our Lord, One Thousand Nine Hundred and....................A. D. 19... between...
-Long Form Of Trust Deed. Continued
And as additional security for the payment of the indebtedness aforesaid, the said party of the first part, for said party, and for the heirs, executors, administrators and assigns of said party, cove...
-12. Principal Trust Deed Note
$5,000 Chicago, Illinois, Jan. 15, 1912. Three years after date for value received, we promise to pay to the order of ourselves the principal sum of Five thousand ($5,000) dollars, in gold coin of ...
-13. Coupon Trust Deed Note
$.................... Chicago, Illinois, Jan. 15, 1912. We promise to pay to the order of ourselves, one hundred fifty ($150) dollars in gold coin of the United States of America, of the present st...
-14. Another Form Of Principal Note
$........................... .....................19.. ..............................................after date, for VALUE RECEIVED, ...............................Promise to pay to the order of...
-15. Release Deed
KNOW ALL MEN BY THESE PRESENTS, That I, William H. Jones, trustee, and holder of the note secured by the trust deed hereinafter described of the County of Cook and State of Illinois, for and in consid...
-16. Lease - Short Form
THIS AGREEMENT, Made this....................day of .....................................A. D. One Thousand Nine Hundred....................................(A. D. 191)...... Between ............
-17. Guarantee Of Lessee's Undertakings
For value received..................hereby guarantee the payment of the rent and the performance of the covenants and agreements of the party of the second part in the within Lease, in manner and form...
-18. Assignment Of Lease And Acceptance Thereof
(To be used by tenant in assigning to another tenant.) For value received..................hereby assign all........ right, title and interest in and to the within Lease unto.......... ........
-19. Consent To Assignment Of Lease
......................hereby consent to the assignment of the within Lease to.................................on the express condition, however, that the assignor shall remain liable for the prompt pa...
-20. Lessor's Assignment Of Lease
(To be used by owner upon sale of the premises.) In consideration of One Dollar, to..............in hand paid, ........................hereby transfer, assign and set over to ..................
-21. Will
I, John Doe, of the City of Chicago, County of Cook and State of Illinois, being of sound and disposing mind and memory do hereby make, ordain, declare and publish this as my last will and testament, ...
-Appendix B2. Questions And Problems
Chapter One 1. On what two senses is the word property defined? Define title; possession. 2. Define real property; personal property; give some illustrations. May property be real and ...
-Appendix B2. Questions And Problems. Part 2
47. What was the history of the estate in fee simple? 48. What words were necessary to create a fee at common law? Are they still necessary? If a deed was made merely to John Doe at common law, w...
-Appendix B2. Questions And Problems. Part 3
95. What is the estate in entirety? Chapter Fourteen 96. D devises lands to T, to manage the same for benefit of B, paying him the net income. What is this arrangement called. What are T and B r...
-Appendix B2. Questions And Problems. Part 4
151. May an alien own real estate? 152. May a minor dispose of his real estate? be grantee in a deed? 153. What capacity bad a married woman at common law to own real estate? Chapter Twenty-O...
-Bankruptcy. Chapter 1. The History And Purposes Of Bankruptcy Legislation
Sec. 1. Definition Of Bankruptcy The word bankruptcy has a technical meaning to indicate that, under the authority of some statute, a judicial proceeding has been instituted for the collection of...
-The History And Purposes Of Bankruptcy Legislation. Part 2
Sec. 4. The Extent Of The Federal Power; Constitutionality Of Present Act The Congress is given power to pass uniform laws on the subject of bankruptcies. The only inhibition is that the laws must ...
-The History And Purposes Of Bankruptcy Legislation. Part 3
Sec. 6. Function Of Bankruptcy Act To Benefit Creditors One purpose of the Bankruptcy Act is to give creditors an equal share in the assets of an insolvent debtor. Under the Bankruptcy Act, as w...
-Chapter 2. The Courts And Officers In Bankruptcy
Sec. 10. The Courts That Have Bankruptcy Jurisdiction Under the act of 1898, the Courts which have jurisdiction in bankruptcy causes, are the Federal District Courts for the states and territories ...
-The Courts And Officers In Bankruptcy. Continued
Sec. 13. Ancillary Jurisdiction Under the express authority of the bankruptcy act, ancillary jurisdiction may be exercised in any district other than the one in which the main proceedings are being...
-Chapter 3. Who May Be A Bankrupt
Sec. 20. Introductory Bankruptcy laws originally applied only to traders. One who was not a trader could not become or be made a bankrupt. The law of 1800 applied to merchants actually using the tr...
-A. In Respect To Business Or Calling
(a) Of natural persons. Sec. 21. In General Any natural person may file a voluntary petition; and any natural person, except a wage earner, a farmer or tiller of the soil, may be made an involun...
-B. In Respect Of Legal Status
Sec. 26. Corporations Corporations, except as noted, may become voluntary or be made involuntary bankrupts. In considering the application of the bankruptcy act to persons or corporations from t...
-C. In Respect To Amount Of Indebtedness
Sec. 33. Voluntary Bankruptcy One who owes debts of any amount whatever may be a voluntary bankrupt. There is no limitation in the law as to amount of indebtedness which a voluntary bankrupt mus...
-Chapter 4. Acts Of Bankruptcy. A. Introductory
Sec. 35. In General In an involuntary petition it is necessary for the creditors to allege some act of bankruptcy. What shall constitute an act of bankruptcy is set out specifically by the law. ...
-B. The Particular Acts Of Bankruptcy
Sec. 38. Fraudulent Transfers A removal, concealment or transfer of a debtor's property with intent to defraud creditors if made within four months prior to the filing of the petition is an act of ...
-B. The Particular Acts Of Bankruptcy. Continued
Sec. 40. Preferences Secured Through Legal Proceedings As Acts Of Bankruptcy This act of bankruptcy consists in a person having suffered or permitted while insolvent any creditor to obtain a prefe...
-Chapter 5. The Petition And Proceedings Thereon
Sec. 43. Voluntary Petitions The voluntary petition should be made out on the official forms itemizing the assets, and the indebtedness and claiming the bankrupts exemption. A voluntary petition...
-Chapter 6. The Trustee's Title
Sec. 47. As Of What Date In Respect To Bankrupt's Ownership The trustee takes title to the property owned by the bankrupt at the time the petition in bankruptcy is filed. The trustee in bankrupt...
-The Trustee's Title. Part 2
Sec. 49. As To Nature Of Property The trustee gets all the property of the bankrupt (except his exemptions) which has any value as an asset for the payment of his debts. After the enumeration of...
-The Trustee's Title. Part 3
Sec. 53. Property Held By Bankrupt In Trust Or Nature Of Trust Property held by bankrupt in trust does not pass to the trustee. (1) In general. The property to which the bankrupt has title as...
-The Trustee's Title. Part 4
Sec. 55. Fraudulent Conveyances A conveyance made by a debtor in fraud of his creditors may be set aside by the trustee in bankruptcy. We have seen that fraudulent conveyances may be grouped und...
-The Trustee's Title. Part 5
Sec. 57. Property Held By Third Person Belonging To Bankrupt In general any property which the bankrupt could demand as his property from third persons, the trustee can demand as the property to wh...
-The Trustee's Title. Part 6
Sec. 60. To What Liens Trustee's Title Is Subject The trustee takes subject to all liens, except judicial liens acquired within four months prior to the filing of the petition in bankruptcy, and ex...
-Chapter 7. Claims Against Estate
Sec. 61. In General The subject of claims against the bankrupt estate involves: A. What claims provable in bankruptcy; B. Proof and allowance of claims; C. Secured and lien claims; D. Claims having...
-A. What Claims Provable In Bankruptcy
Sec. 62. In Respect To Whether Due Or Not All claims which are of a provable kind are provable and allowable whether due or not. In bankruptcy, it is not necessary that a claim be due in order t...
-B. Proof And Allowance Of Claims
Sec. 72. How Claims Proved Claims in bankruptcy are proved by filing a sworn statement of the claim in the form as provided by the bankruptcy rules of the United States Supreme Court. If objections...
-C. Secured And Lien Claims
Sec. 74. In General In another connection it has been discussed (see last chapter, section 60(l)-(9) whether liens and the advantage of security is lost in bankruptcy proceedings. Sec. 75. The S...
-D. Claims Having Priority
Sec. 77. How A Claim Having Priority Differs From A Secured Claim A claim having priority differs from a secured claim in this, that it is the claim of an unsecured creditor to which the law gives ...
-E. Claims Of Preferred Creditors
Sec. 79. Preferred Creditor Must Surrender Preference A creditor who has received a voidable preference must surrender it, and may then prove his claim. 159. In re Haskell, (D. C. Mass.) 228 Fed...
-F. Dividends On Claims
Sec. 80. How Payable The Act sets out when and how dividends may be declared and paid.166 The general creditors receive dividends upon their claims where the assets are sufficient to pay dividen...
-G. Compositions With Creditors.167
Sec. 81. Composition May Be Offered By The Bankrupt The Bankruptcy Act for the purpose of saving the expense of full administration permits the bankrupt to offer a composition with his creditors. ...
-H. Set-Offs
Sec. 84. Right To Set-Off Creditor may set off claim of bankrupt against his claim against the estate. The law provides: SEC. 68. Set-offs and counterclaims. - (a) In all cases of mutual deb...
-Chapter 8. Duties And Rights Of Bankrupt
Sec. 85. Duties Enumerated By Act The bankrupt must perform the duties enumerated by the Act, looking to the result of getting in the assets of the estate, securing proper and orderly administratio...
-Duties And Rights Of Bankrupt. Continued
Sec. 88. Detention Of The Bankrupt Upon satisfactory proof, as provided in the bankruptcy law, that a bankrupt is about to leave the jurisdiction and thereby hinder the proceedings in bankruptcy, t...
-Discharge. A. The Discharge Of The Bankrupt
Sec. 91. Importance Of Discharge The bankrupt's discharge is granted him if applied for by him as required by the Act, and has the effect of releasing him from his dischargeable debts. His discharg...
-B. Debts Not Dischargeable
Sec. 96. In General Assuming that a discharge is granted to the bankrupt - what debts are discharged thereby? Are there any that are not discharged? Sec. 97. General Rule The general rule is ...
-General Law Of Debtor And Creditor
Sec. 100. Indebtedness Defined An indebtedness exists where a person is under a present legal obligation to pay at a present or future time to another person a sum of money. The first person we cal...
-A. Liens Arising Out Of Contract
Sec. 107. Chattel Mortgages A chattel mortgage is a lien upon specified personal property in the form of a conveyance of property with a condition or proviso that it shall be void if the debt is pa...
-Liens Arising Out Of Contract. Part 2
(5) Perfecting the lien in respect to third persons. A chattel mortgage is good as between the parties, whenever the contract has been made, though informal, and the court will enforce it; but the ...
-Liens Arising Out Of Contract. Part 3
Sec. 108. Conditional Sales The term conditional sale, is used to describe a transaction in which a seller of goods parts with their possession to the buyer, but in his contract reserves title fo...
-Liens Arising Out Of Contract. Part 4
Sec. 110. Assignments Of Contractual Rights By Way Of Security Contractual rights may be assigned by way of security. (1) Power to assign. We have already considered the pledge of property by...
-B. Liens Independent Of Contract
Sec. 111. The Common Law Liens The common law gave certain liens to a creditor independent of contract. Possession by the creditor was requisite. There may be also liens by statute which are of the...
-C. Liens Acquired Through Judicial Proceedings
Sec. 113. General Statement - Judicial Liens Liens may be acquired by a debtor by obtaining a judgment, or pursuing other legal process. The judicial liens, i.e., liens arising through judgment ...
-Chapter 11. Remedies Of Creditors. A. Remedies To Enforce Payment Of Debt
Sec. 114. The Remedy Of A Suit At Law A creditor may enforce his claim through the means of an ordinary suit at law pursued to judgment. Where one has a claim against another it may or may not b...
-Remedies To Enforce Payment Of Debt. Part 2
(4) Conveyance for value as fraudulent. (a) In general. We have noted how a debtor even though he be insolvent may transfer a good title to his property to one who has given value and taken in g...
-Remedies To Enforce Payment Of Debt. Part 3
(d) Badges of fraud. General statement. We have noted that the greatest difficulty in cases to set aside fraudulent conveyances, is to prove the case. The creditors might be able to prove circumsta...
-B. Payment And Tender
Sec. 116. Payment Of Liquidated Debt Payment of a debt may be in any medium the parties agree, and may be absolute or conditional. The parties may agree upon any medium - gold, silver, certifica...
-C. Settlement And Compromise Between Debtor And Creditor
Sec. 121. Claims - Liquidated Or Unliquidated And Doubtful In discussing this subject, it is necessary to regard the condition of the claim in respect to whether it is liquidated, unliquidated or d...
-D. Compositions With Creditors
Sec. 125. Composition Defined A composition by a debtor with his creditors is an arrangement whereby the debtor pays or agrees to pay a certain percentage of the claims to the creditors upon their ...
-E. Exemptions
Sec. 126. General Statement By the various state laws, certain property is exempt from seizure for debt. These laws differ in the various states. They are based upon the theory that it is a sound p...
-Appendix A. The Federal Bankruptcy Law. Chapter I. Definitions
Secs. 1. Meaning of words and phrases. Chapter 2. Creation And Jurisdiction Of Courts Of Bankruptcy Secs. 2. Courts of Bankruptcy. Chapter 3. Bankrupts Secs. 3. Acts of bankruptcy...
-Chapter 1. The Federal Bankruptcy Law Definitions
Section 1. Meaning of Words and Phrases. - a. The words and phrases used in this Act and in proceedings pursuant hereto shall, unless the same be inconsistent with the context, be construed as follows...
-Chapter II. Creation Of Courts Of Bankruptcy And Their Jurisdiction
Section 2. That the courts of bankruptcy as hereinbefore defined, viz., The district courts of the United States in the several states, The supreme court of the District of Columbia, The district cour...
-Chapter III. Bankrupts
Section 3. Acts of Bankruptcy. - a. Acts of bankruptcy by a person shall consist of his having (1) Conveyed, transferred, concealed, or removed, or permitted to be concealed or removed, any part of...
-Bankrupts. Part 2
SEC. 6. Exemptions of Bankrupts. - a. This Act shall not affect the allowance to bankrupts of the exemptions which are prescribed by the State laws in force at the time of the filing of the petition i...
-Bankrupts. Part 3
SEC. 11. Suits by and Against Bankrupts. - a. A suit which is founded upon a claim from which a discharge would be a release, and which is pending against a person at the time of the filing of a petit...
-Chapter IV. Courts And Procedure Therein
SEC. 18. Process, Pleadings, and Adjudications. - a. Upon the filing of a petition for involuntary bankruptcy, service thereof, with a writ of subpoena, shall be made upon the person therein named as ...
-Courts And Procedure Therein. Continued
SEC. 22. Reference of Cases After Adjudication. - a. After a person has been adjudged a bankrupt the judge may cause the trustee to proceed with the administration of the estate, or refer it (1) gener...
-Chapter V. Officers, Their Duties And Compensation
SEC. 33. Creation of Two Offices. - a. The offices of referee and trustee are hereby created. SEC. 34. Appointment, Removal, and Districts of Referees. - a. Courts of bankruptcy shall, within the t...
-Officers, Their Duties And Compensation. Part 2
SEC. 40. Compensation of Referees. - a. Referees shall received as full compensation for their services, payable after they are rendered, a fee of fifteen dollars deposited with the clerk at the time ...
-Officers, Their Duties And Compensation. Part 3
SEC. 48. Compensation of Trustees, Receivers and Marshals. (a) Trustees shall receive for their services, payable after they are rendered, a fee of five dollars deposited with the clerk at the time th...
-Chapter VI. Creditors
SEC. 55. Meetings of Creditors. - a. The court shall cause the first meeting of the creditors of a bankrupt to be held, not less than ten nor more than thirty days after the adjudication, at the count...
-Creditors. Continued
SEC. 58. Notices to Creditors, (a) Creditors shall have at least ten days' notice by mail, to their respective addresses as they appear in the list of creditors of the bankrupt, or as afterwards filed...
-Chapter VII. Estates
SEC. 61. Depositories for Money. - a. Courts of bankruptcy shall designate, by order, banking institutions as depositories for the money of bankrupt estates, as convenient as may be to the residences ...
-Estates. Continued
SEC. 66. Unclaimed Dividends. - a. Dividends which remain unclaimed for six months after the final dividend has been declared shall be paid by the trustee into court. b. Dividends remaining unclaim...
-The Time When This Act Shall Go Into Effect
[71] a. This Act shall go into full force and effect upon its passage: Provided, however, That no petition for voluntary bankruptcy shall be filed within one month of the passage thereof, and no pe...
-Appendix B. Interest Table
(Note: This table is necessarily too brief for anything except general reference. Accuracy is attempted but not guaranteed; and details and distinctions between large and small loans, etc., are omitte...
-Appendix C. Table Of Exemption Laws
Table Of Exemption Laws. 1 (Property or income exempt from seizure for debt.) State Homestead Exempt Personal Property Exempt Wages Exempt ...
-Appendix D2. Questions And Problems
Chapter One 1. Define the term bankruptcy. 2. Whence is the term derived? 3. Distinguish bankruptcy from insolvency. 4. What was the earliest bankruptcy law? What was object of early bankr...
-Appendix D2. Questions And Problems. Part 2
56. What must the petition allege? 57. What is adjudication in bankruptcy? 58. When is the first meeting of creditors held? Its purpose? Business done thereat? 59. How, when and by whom is ...
-Appendix D2. Questions And Problems. Part 3
88. Is a judgment against a debtor provable in the event of his bankruptcy ? 89. B having a lease from A with monthly rental payments goes into bankruptcy. Can B prove the subsequently accruing ins...









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