What is a fictitious person?
Legal Definition of fictitious person : a supposed but in fact nonexistent person referred to in some legal documents or proceedings also : fictitious payee.
What is another word for fictitious?
Fictitious Synonyms – WordHippo Thesaurus….What is another word for fictitious?
| imaginary | mythical |
|---|---|
| unreal | fanciful |
| fantastic | fabulous |
| chimerical | imagined |
| fictional | mythic |
Which are fictitious assets?
Expenses or losses that are not written off during the accounting period of occurrence because they give long-term benefit over a period of time are categorized as fictitious assets. Marketing expenses, bank NPAs, discounts on the issue of shares, and debenture losses are few examples of fictitious assets.
What is a fictitious payee?
: a person named as payee in an instrument who does not in fact exist or who does exist but to whom the maker of the instrument does not intend to convey any interest in the instrument.
Can the drawer be a fictitious person?
An existing person may be considered fictitious depending on the intention of the maker or the drawer. – “fictitious person” means a person who has no right to the instrument because the maker or drawer of it so intended.
What is the imposter rule?
An impostor rule is a legal principle affirming that an impostor’s indorsement of a negotiable instrument is not a forgery. Imposter refers to a person who engages in deception under an assumed name or identity.
What is a fictitious payee in the nil?
If the payee is not the intended recipient of the proceeds of the check, the payee is considered a “fictitious” payee and the check is a bearer instrument. In a fictitious-payee situation, the drawee bank is absolved from liability and the drawer bears the loss.
Can there be a negotiation to a payee?
Can there be a negotiation to a payee? Explain. – Yes, there is negotiation to a payee when the first delivery of the instrument is other than the payee such as the agent of the maker or drawer or when the instrument is delivered back to the payee by the last holder.
What is ambiguous instrument?
An ambiguous instrument is basically 0ne that may be either a bill or a note for its holder. Such situations arise in peculiar circumstances only. Under such circumstances, the holder of such instruments may treat them either as bills of exchange or as promissory notes.
Why an instrument payable to a fictitious person is treated as bearer instrument?
An instrument is regarded as payable to bearer when it is “payable to the order of a fictitious or non-existing person and such fact was known to the person making it so payable.”s In the early cases more frequently than in the modem cases it was the drawer of the instrument, rather than the agent, who supplied the …
Is ante dated or post dating an instrument illegal?
12. Ante-dated and post-dated. – The instrument is not invalid for the reason only that it is ante-dated or post-dated, provided this is not done for an illegal or fraudulent purpose. The person to whom an instrument so dated is delivered acquires the title thereto as of the date of delivery.
Are negotiable instruments considered legal tender?
3. Function & Importance of Negotiable Instruments ▪ Although they do not constitute legal tender, they are used as a substitute for money. Negotiable papers, particularly checks, constitute, at present, the media of exchange for most commercial transactions.
What is sufficient presentment payment?
Presentment for payment, to be sufficient, must be made: By WHO – by the Holder, or by some person authorized to receive payment on his behalf; To Whom – to the person primarily liable on the instrument, or if he is absent or inaccessible, to any person found at the place where presentment is made.
In what instances is presentment for payment necessary?
Where a bill is not payable on demand, presentment must be made on the day it falls due; if it is payable on demand, it must be presented within a reasonable time. In the case of a bill payable after sight, presentment for acceptance (as opposed to payment) is necessary in order to fix its maturity date.
What is a notice of dishonor?
A notice of dishonor is a formal notice stating that the bank will not accept a check or draft presented to the institution.
What is payment in due course?
“Payment in due course” means payment in accordance with the apparent tenor of the instrument in good faith and without negligence to any person in possession thereof under circumstances which do not afford a reasonable ground for believing that he is not entitled to receive payment of the amount therein mentioned.
Who can countermand the payment of a Cheque?
It can happen when a payer stops payment on a check or stops/reverses a transfer of funds. Countermand of payment by the customer then ends the legal duty of the bank or institution to make the payment to the party, as originally specified by the customer.
What is a stale Cheque?
Stale cheques are outdated cheques issued to the bank after the date of payment has expired. After three months from the issuance date, cheques become stale. Post-dated cheques may be dated in the future, it may be months or years from the date of issue.
What is the holder in due course rule?
In commercial law, a holder in due course is someone who accepts a negotiable instrument in a value-for-value exchange without reason to doubt its legitimacy.
What are 7 requirements to negotiability?
Thus the paper meets the following criteria:
- It must be in writing.
- It must be signed by the maker or drawer.
- It must be an unconditional promise or order to pay.
- It must be for a fixed amount in money.
- It must be payable on demand or at a definite time.
- It must be payable to order or bearer, unless it is a check.
What is the holder rule?
The Holder Rule is a federal regulation intended to help consumers when a defective or fraudulent product or service is purchased with credit extended directly by the seller or arranged by the seller.
What is facultative endorsement of Cheque?
Facultative Endorsement. Facultative Endorsement is an underwriting where the endorser defers some privilege to which he is entitled. For instance, the endorsee is subject to pull out of disrespect to the endorser, and typically inability to pull out will vindicate the endorser from his risk.
What are three types of check endorsements?
The three types of check endorsements are blank, restrictive and special. Each type of endorsement has its own rules for depositing or cashing the check. A blank endorsement, the most common type, is endorsed by the payee and presented to the bank for cash or deposit.
What is full endorsement?
An endorsement “in full” or a special endorsement is one where the endorser puts his signature on the instrument as well as writes the name of a person to whom order the payment is to be made.