BILLS AND NOTES - NEGOTIABILITY - ACCELERATING FACTORS EXTRANEOUS TO INSTRUMENT

Authors

Abstract

Plaintiff was a good faith purchaser of a trade acceptance payable at a fixed date with a provision for acceleration at the option of the holder [1] " . . . upon the acceptor hereof suspending payment, [2] giving a chattel mortgage, [3] suffering a fire loss, [4] disposing of his business or [5] failing to meet at maturity any prior trade acceptance." In an action by the plaintiff after the fixed date of maturity, defendant-acceptor contended that accelerating provisions 3 and 5 rendered time of payment uncertain and the instrument non-negotiable. Held, the trade acceptance was negotiable. People's Finance & Thrift Co. of Vallejo v. Shaw-Leahy Co. (Cal. 1931) 3 Pac. (2d) 1012.

Recommended Citation

BILLS AND NOTES - NEGOTIABILITY - ACCELERATING FACTORS EXTRANEOUS TO INSTRUMENT, 30 Mich. L. Rev. 789 (1932).
Available at: https://repository.law.umich.edu/mlr/vol30/iss5/11