9.1 Chapter 9 Performances and Payments © 2003 by West Legal Studies in Business/A Division of Thomson Learning

9.2 Performances  When should performance be paid?  What was performed?  Who performed?  To whom was the performance made?  Did both parties fully perform?

9.3 Conditions  Triggering condition  Conditions precedent  Concurrent conditions  Conditions subsequent

9.4 Title Discuss the following terms:  Title  Identified goods  Uncertificated rights  Endorsement  Commercial paper

9.5 Title Discuss the following terms:  Trusted and reliable third party intermediaries  Documents of title  Bailees  Bills of lading and warehouse receipts  Warranty of title

9.6 Risk of Loss  Insurable interest  Mercantile terms  FOB, FAS, CIF, C&F, Ex-Ship  Sale on approval  Sale or return

9.7 Third Party Beneficiaries  Obligee  Obligor  Donee third-party beneficiary  Creditor third-party beneficiary  Incidental beneficiaries

9.8 Payment Systems  Notes  Promissory, installment, collateral, mortgage  Certificate of deposit  Drafts  Check  Time draft  Sight draft  Trade acceptance Pay to: $ Harry Havalott 852 Elmhurst Anytown, NM Date: Dollars Megabux National Bank 893

9.9 Requirements for Negotiability  In writing  Signed by the maker or the drawer  Contains unconditional promise to pay  Contains fixed amount of money  Payable on demand or at a certain time  Payable to order or to bearer  Must not contain anything else

9.10 Negotiation and Transfer  Issue  Delivery by transfers  Negotiation  Negotiation by a holder  Endorsement

9.11 Types of Endorsements  Blank  Special  Restrictive  Unqualified  Qualified

9.12 Negotiation and Transfer  Holder which becomes holder in due course  Shelter rule  Defenses  Personal  Real

9.13 Liabilities of the Parties  Contract liability and warranty liability  Primary  Primary liability is for makers, drawers, and drawees  Secondary  Secondary liability is for endorsers  Endorsers  Endorsers become secondarily liable after payment is refused

9.14 International Sales Transactions  International documentary sales  Open account  Sight or time drafts  Letters of credit  Buyer  Issuing bank  Letter of credit beneficiary  Confirming bank

9.15 Electronic Payment Systems  Storehouse of value such as gold and silver  A medium of exchange…  Must be widely available  Must be widely accepted  The public must have confidence in it

9.16 Types of Electronic Payment Systems  ATMs  Electronic bill payment and presentment  Automated clearing house facilities  Debit cards  Credit cards  Wholesale funds transfers

9.17 Internet and Other (peer-to-peer) Payments  PayPal  Electronic customer loyalty point systems  Electronic access and manipulation of accounts  Smart cards  Escrow services

9.18 Questions & Discussion