topik 5 instrumen boleh niaga

Upload: lionheart8888

Post on 03-Apr-2018

389 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    1/36

    A M I N U R A S Y E D B I N M A H P O P

    F A C U L T Y O F L A W

    U N I V E R S I T I K E B A N G S A A N M A L A Y S I A

    1

    NEGOTIABLE

    INSTRUMENTS

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    2/36

    CONTENTS2

    Negotiable Instruments

    Bills of Exchange

    Cheques

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    3/36

    NEGOTIABLE INSTRUMENTS3

    Monetary instruments facilitate trade and commerce

    A formal legal document which contains a legal

    obligation to pay money and which possesses theattributes of negotiability.

    Negotiability: a form of transfer of property

    (ownership) from one person to another in adocument evidencing a contractual obligation to paymoney.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    4/36

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    5/36

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    6/36

    TERM6

    Drawer: A person who draws a bill (Customer)

    Drawee: A person on whom it is drawn (Bank)

    Payee: Person to whom the bill is drawn payable

    Acceptor: When the drawee accepts a bill (bank).

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    7/36

    CHARACTERISTICS OF BOE7

    Unconditional Order

    In writing

    Addressed by one person to another

    Signed by the person giving it To pay on demand or at a fixed or determinable

    future time

    A sum certain in money To or to the order of specified person or to bearer

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    8/36

    UNCONDITIONAL ORDER8

    Must be unconditional.

    Palmer v Pratt

    An order to pay at 30 days after the arrival of the ship wasconditional.

    See also Cooperative Exportvereniging Vecofa UA

    V Maha Syndicate [1970] 1 mlj 187

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    9/36

    IN WRITING9

    S3 MIA 1967: Printing, photography and any othermode of representing words in visible form.

    May be drawn in any language

    SeeArab Bank Ltd. v Ross [1952] 2 QB 216

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    10/36

    ADDRESSED BY ONE PERSON TO ANOTHER

    10

    Drawer (customer) to drawee (banker)

    Bank drafts drawn by a bank on itself are not BOE

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    11/36

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    12/36

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    13/36

    TO OR TO THE ORDER OF SPECIFIED PERSONOR TO BEARER

    13

    To specified person: Must be named and certain

    To bearer: simply paid to the bearer without

    requiring proof of identity.

    cash or order

    Account payee only: a cheque can only be paid intothe account of the person name on the cheque, thepayee.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    14/36

    CHEQUES14

    A document/instrument that orders a payment ofmoney from a bank account.

    BOE 1949: A BOE drawn on a banker payable ondemand.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    15/36

    ISSUING CHEQUES15

    Section 2-- issue means the first delivery of a bill complete inform, to a person who takes it as a holder.

    Mere signing and fills in the blanks, not a valid cheque. Section 2 defines holder as the payee or indorse of a bill who

    is in possession of it/bearer. Payee is the person to whom the cheque is drawn payable Indorse is the person to whom the cheese is made payable by

    a special indorsement. Section 2 defines delivery- transfer of possession,

    actual/constructive from one person to another Section 21(2)- delivery may be conditional or for a special

    purpose only. It is not for the purpose of transferring theproperty in the cheque.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    16/36

    DATING A CHEQUE16

    No legal requirement

    In practice, the drawee refuses to pay and return it

    with the answer date required.

    Antedated cheque: Bears a date before the date ofissue.

    Postdated cheque: dated later than the date of issue.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    17/36

    POSTDATED CHEQUE17

    It is a valid BOE and capable of being transferred.

    Lien Chung Credit & Leasing Sdn Bhd v Chang ChinChoi[1994] 3 MLJ 488

    Postdated cheque RM35K as a security for the loan. Postdated cheque was not a cheque (not payable on demand).

    It was not a security.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    18/36

    NEGOTIATION OF CHEQUES18

    If there is word only- the cheques are incapable ofnegotiation

    Section 8(4)- a cheque payable simply to a specifiedperson without the addition of the words or order is

    negotiable in the usual way Section 81A : a cheque crossed account payee/AC payee

    shall not be transferable but shall only be valid betweenthe parties.

    Section 31(1)i. Payable to bearer: negotiated by delivery aloneii. Payable to order: negotiated by the indorsement of the holder

    completed by the delivery

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    19/36

    CROSSING ON CHEQUES19

    Construed as a request to the drawee bank toexercise caution in the payment of cheques.

    General Crossing:- S76(1) a crossing 1. an addition to

    a cheque 2. made across its face and by means of twoparallel transverse lines. Payment can made to another banker

    Special Crossing- 1. an addition to a cheque 2.

    comprising the name of a banker 3. with or withoutwords not negotiable. Payment can only be paid to the banker named in the crossing

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    20/36

    A/C PAYEE CROSSING20

    A cheque crossed account payee is non transferable.

    Sole duty of a banker to pay an A/C payee chequeinto the named payees account.

    If the collecting banker fails to observe this duty, it isconsidered as negligent on the part of the bank.

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    21/36

    CROSSING WITH THE WORDS A/CPAYEE ONLY

    21

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    22/36

    CROSSING WITH THE WORDS NOTNEGOTIABLE

    22

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    23/36

    INDORSEMENT23

    Section 34(1) Blank indorsement Section 34(2) special indorsement Section 32(a) 82 of the Bills of Exchange Act the

    signature of the holder or of his duly authorized agent isessential to the validity of indorsement

    Section 32(b) partial indorsement, does not operate asnegotiation of an instrument

    Section 32(d)- he may indorse the instrument asdescribed- he may add, if he thinks fit, his proper

    signature See Arab Bank Ltd. v Ross [1952] Court of Appeal: the

    omission of the word company made the indorsementirregular

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    24/36

    WHAT IS INDORSEMENT?24

    National Bank v Patterson (1909) a South Africancase attempts to define indorsement:

    Every signature written on the back of such instrument is anindorsement

    Ordinary legally meaning is the signing of a name on the backof an instrument (intention to take liabilities of an indorser)

    Last-named sense followed by delivery

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    25/36

    INDORSEMENT25

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    26/36

    INDORSEMENT26

    United Asian Bank Bhd v Tai Soon HengConstruction Sdn Bhd

    Tai, was a customer to UAB and had opened an

    account at UABsbranch in KL. UABs account clerkwho was not an authorized signatory to cheques,forged several cheques of Tai. All these cheques werehonoured by UAB and Tais account with itwas

    debited in consequences. Tai brought an actionagainst UAB after forgery was discovered.

    Issue: whether banker should be held liable?

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    27/36

    27

    Anuar J: a customer need to establish on balance ofprobabilities

    Liability of a bank for payment on forgedinstruments of its customers is founded on the tort

    off conversion, tort of strict liability Duties of a customer

    a) to refrain from drawing a cheque which may facilitate forgery

    b) to inform the banker of any forgery of a cheque as soon as the

    customer becomes aware of it. Duty to inspect his periodical bank statements

    Appeal dismissed

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    28/36

    CHEQUES28

    Section 2, 3 13, 20, 21, 31, 34, 35 & 73, 82 Bill of Exchange Act Lien Chung Credit & Leasing Sdn Bhd v Chang Chin Choi[1994] 3

    MLJ 488 National Bank v Silke [1891] 1 QB 435 Arab Bank Ltd v Ross [1952] 2 QB 216

    United Asian Bank Bhd v Tai Soon Heng Construction Sdn Bhd[1993] 1 MLJ 182 Marfani & Co Ltd v Midland Bank Ltd[1968] 2 ALL ER 573 Brown v Westminster Bank Ltd[1964] 2 Lloyds Rep 187 Tina Motors Pty Ltd v Australia & New Zealand Banking Group

    Ltd[1977] VR 205 Syarikat Islamiyyah v Bank Bumiputra Malaysia Bhd[1988] 3

    MLJ 218 Tai Hing Cotton Mill Ltd Liu Chong Hing Bank Ltd[1985] 3 WLR

    317

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    29/36

    CHEQUES29

    Holder of a Cheque

    Section 2, 34, 77, 69, 35, 38 (a), 49 Bill of Exchange

    Arab Bank Ltd v Ross [1952] 2 QB 216

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    30/36

    CHEQUES30

    Holder in Due Course

    Section 24, 27, 29, 55, 95 Bill of Exchange

    Re Jones v Waring and Gillow Ltd[1926] AC 670

    Midland Bank Ltd v Reckitt[1933] AC 1

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    31/36

    CHEQUES31

    Defences to a Claim on a Cheque Section 27, 30, 74, 49, 50, 22, 21, 24, 64

    Syarikat Islamiyyah v Bank Bumiputra Malaysia Bhd[1988] 3 MLJ 218

    Kepitigalla Rubber Estates Ltd v National Bank of IndiaLtd[1909] 2 kb 1010

    Tai Hing Cotton Mill Ltd v Liu Chong Hing Bank Ltd &Ors [1985] 2 Lloyds Rep 313

    Greenwood v Martin Bank Ltd[1932] 1 KB 371 Bird & Co (London) Ltd v Thomas Cook & Son Ltd[1937]

    2 ALL ER 227

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    32/36

    CHEQUES32

    Fraud

    Section 17 Contracts Act 1950

    Saunders (Excutrix of the Will of Rose Maude Gallie,

    deceasd v Anglia Building Society [1971] AC 1004

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    33/36

    CHEQUES33

    Duress or Coercion

    Section 16 Contracts Act 1950

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    34/36

    CHEQUES34

    Colletion of Cheque

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    35/36

    CHEQUES35

    Collecting Bankers Duties

  • 7/28/2019 Topik 5 Instrumen Boleh Niaga

    36/36

    CHEQUES36

    Claims by Third Parties against CollectingBankers

    I. Claims at common law

    II. Claims in equity