bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 1 Negotiation of a Bill of Exchange Josef Kotásek, Ph.D. Důvody volby tohoto tématu; bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 2 Case Problem • Tom purchased a used PC from John for 500 euro (100 euro Cash, 400 in the form of a promissory note due in 3 months). Fearing that Tom would discover that he computer was defective, John transferred the note to Sylvia. She attempted unsuccesfully to collect from Tom, who by then had discovered that the PC was worthless. Sylvia has sued Tom. Will Sylvia prevail as to the entire amout of the note? Explain… Dolus ne culpa lata bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 3 Intention of drafters of the Uniform Bill of Exchange Act • •Simple process of negotiation •Series of contracts •Chain creating •Transferee status - protected • charakteristiku problematiky daného vědního oboru a vlastní odborné výsledky uchazeče . Reakce na nešvary české obchodní praxe. Netradiční situace ve Východní Evropě. Současně výzva – směnečné teorie (kreační, smluvní, teorie ochrany domnělých práv) argumentují svá pojetí a přístupy právě na těchto „netradičních případech“. bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 4 Transfer of a negotiable instrument •„Nonnegotiable paper“ •May be assigned •Bearer paper •Paper payable to the person who has physical possession of it •Holder on delivery •Order paper •Paper payable to the order of a named payee •Delivery + Indorsement (in writing) bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 5 „Nonnegotiable“ instrument •drawer may exclude endorsement by the so-called restrictive clause („Rektaklausel“) and the bill is then transferable by assignment •the law demonstratively states the wording: “not to order” •in practice, we usually find it under the designation of the creditor in bill (“Pay not to order to Mr. Jan Černy”) •transfer is then possible only in the form and with the effects of assignment (Civil Code) •for the contract of assignment to be valid a written form is required by the law •Effects: the acquirer acquires the right only derivatively from the previous possessor and is exposed to all objections lodged by the debtor against the endorser (PERSONAL DEFENSES) • • bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 6 Indorsement of a Bill • Bill of exchange • In Prague, January 1, 2005 • For this bill of exchange pay to the order of Franck Payee the sum of One hundred 100 USD. • Drawee: • Karel Nowak • Brno, Úvoz 1 • 602 00 • At: Brno,Úvoz 1, 602 00 • accepted Karel Nowak Signature of the drawer • Jan Pleva bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 7 Indorsement – Participants, Form and Location • For me to order of Paul Newman Franck Payee • signature • • • For me to order of Franck Black Paul Newman • signature bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 8 Blankindorsement •Endorser can „turn“ order paper into bearer paper: • • •„Pay ……. • (s) Kim Gordon“ • • bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 9 Effects of indorsements •Transferring (Sec. 14 I) • •Legitimizing (Sec. 16) • •Guaranteeing (Sec. 15) • Dolus ne culpa lata, německé řešení… bluebackgorund 3/5/2013 3:51 PM ‹#› 3/5/2013 3:51 PM 10 Types of Indorsement •Non-binding - Art. I, Sec. 15, par. 1 • “sine obligo”, “without binding effect”, “without guarantee”, “without recourse” • •Direct (transfer prohibition) - Art. I, Sec. 15,par. 2 BECA • “not to order” • •Mandating - Art. I, Sec. 18 BECA • “value in collection”, “for collection”, “by procreation” • •Securing - Art. I, Sec. 19 BECA • “to securing”, “value for securing”, “value in pledge” • •Sub-endorsement- Art. I, Sec. 20 BECA • Dolus ne culpa lata