(B) Commentary

A: PURPOSE AND NATURE OF INSTRUMENTS

1: PURPOSE OF INSTRUMENTS

1 Instruments1

An instrument is a document of title to money. Instruments can therefore be used as a means of effecting payment or advancing credit. As between payer and payee there may be advantages in using instruments if cash is not available, or if it would be difficult to handle, or if the payer and the payee normally trade in different currencies. In such cases, the payee will rely on the payer’s title to the money represented by the instrument. If the payee is dealing directly with

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial