Vocabulary Words

o Absconded - escaped, vanished, run away. o Acceleration Clause A contractual provision, which hastens the due date of payment or obligation, as a penalty for default in the payment/ obligation. o Acceptance the signification of the drawee of his assent to the order of the drawer. o Acceptor the person who signifies his acceptance to the order of the drawer. o Accommodation party who has signed the instrument as maker, drawer, indorser or acceptor without receiving value therefor, and for the purpose of lending his name to some other person. o Accumulation - collection aggregation; acquiring. o Action legal proceedings, suit. o Adequacy - sufficiency. o Agent - representative; one acting for another. o Alleged - accused; declared; claimed. o Allonge a separate paper attached to a negotiable instrument where an indorsement or the acceptance of a bill of exchange is written. o Ambiguous - indefinite; misleading; having a double meaning. o Anomalous - strange; irregular. o Antecedent - earlier; pre-existing; previous. o Ante-dating - assigning earlier date to an instrument. o Appended - affixed, attached. o Assent - approval or permission. o Assert - to state positively; to envoke or enforce. o Assignment a method of transferring an instrument whereby the transferee is merely place d in the position of the transferor and acquires the instrument subject to all defenses. o Attested - testified, verified, confirmed. o Authentic - genuine, real, true, actual, bona fide, legitimate, original, valid. o Bad Faith - the action of such a person that involves an intention to deceive or mislead another to gain some advantage. o Bearer - a person who is in actual possession of a negotiable instrument. o Bona fide genuine, real, actual, true, in good faith, honest, sincere. o Breach failure or violation of a legal obligation. o Broker middleman o Burden of proof the responsibility of proving a fact regarding issues raised by disputing parties in a court case. o Certain convinced; sure o Claim an assertion of fact which establishes a legally enforceable right to some form of compensation or remedy. o Commercial business, trade o Conclusive decisive; convincing; definite; certain; unquestionable. o Conditional dependent; not absolute o Confession a voluntary admission by the accused person that he has committed the acts, which constitute the crime.

o Consideration means an inducement to a contract, which is the cause, price or impelling influence that induces a contracting party to enter into the contract. o Countermanded cancelled, called back o Damages are the pecuniary compensation given by the process of law, to a person for the actionable wrong that another has done him. o Debt a sum of money due from one person to another. o Decedent a person who is no longer alive. o Default failure to act or appear or pay; fail to meet obligations. o Defenses grounds or reasons pleaded or offered by the defendant in a case, showing why the plaintiff, as a matter of law or fact, should not be given the relief he seeks. o Deficiency shortage, insufficiency, inadequacy; flaw, defect, imperfection. o Delivery transfer of possession, actual or constructive, from one person to another. o Detained withheld, kept in ones custody. o Discharge release, terminate. o Disclose make known o Dishonor to refuse or neglect to accept or pay when duly presented for payment of a bill of exchange or promissory note. o Dispensed with not necessary, not required o Dissent disagree, oppose, withhold assent; withhold approval. o Document official paper, record, instrument, legal form o Doubt feeling of uncertainty o Duly properly, correctly, appropriately; sufficiently; punctually. o Execute accomplish, put into effect o Fact any information, event, or anything that occurred which can be proved in a court of law. o Fictitious unnatural or unreal o Foreign bill of exchange bill drawn in one state or country and payable in another state/country. o Forgery the counterfeit making or fraudulent alteration of any writing, and may consist in the signing of anothers name, or the alteration of an instrument in the name, amount, description of the person and the like, with intent to defraud. o Fraud misrepresentation of the truth or concealment of a material fact to induce another to act to his or to her detriment. o Fraud in factum or fraud in esse contractus - fraud in the execution; instrument has no legal existence; fraud occurring when a legal instrument as actually executed differs from the one intended for execution by the person who executes it. o Fraud in inducement simple fraud; an intentional misrepresentation of a material risk or duty reasonably relied on thereby injuring the other party without vitiating the contract itself. o Furnishes provides, renders o General applicable to all, common, regular; ordinary. o Good faith sincere and honest, without any intention to defraud another person. o Good title a title to a property that is free from any reasonable doubt.

o Holder the payee or indorsee of a bill or note who is in possession of the instrument, or the bearer thereof. o Holder for value one who has given a valuable consideration for the instrument issued or negotiated to him. o Immediate prompt, instant, done without delay; near, adjacent, close, nearby, nearest. o Imputable attributable, traceable, chargeable o Incapacitated disabled, insane or demented persons deaf-mutes who do not know how to write. o Indorse/endorse/indorsement from Latin word indorsa, literally means writing on the back; giving support, approval or backing to. o Indorsee the person or party to whom an instrument is negotiated by indorsement. o Infirmity deficiency; defect; fault; imperfection. o Inland bill of exchange both drawn and payable within the sane country. o Insolvent - bankrupt o Inure to take effect; to come into use o Issue first delivery of an instrument, complete in form, to a person who takes it as holder. o Joint two or more persons in common; sharing with others in possession etc. o Joint and several when there are two or more defendants, each of them is responsible for the entire debt or damage regardless of the individuals share. o Knowledge awareness of the actual facts. o Legal tender a currency which a debtor can legally compel a creditor to accept in payment of a debt in money when tendered by the debtor in the right amount. o Legislation legislative law, ordinance, enactment, regulation, ruling, bill, statute. o Liability an obligation, duty or responsibility to do something or to refrain from doing something. o Lien - right to retain/hold on the property o Material alteration any change in the instrument which affects the liability of the parties. o Merchant wholesale trader, salesman, saleswoman, dealer, purchaser, broker, vendor o Money the medium of exchange authorized or adopted by a domestic or foreign government as part of its currency. o Negligence the failure to exercise reasonable care to avoid causing harm to another person or others property. o Negotiability quality or attribute of a bill or note whereby it may pass from one person to another similar to money. o Negotiation the transfer of a negotiable instrument from one person to another made in such a manner as to constitute the transferee the holder thereof. o Notice of dishonor bringing, either verbally or by writing, to the knowledge of the drawer and indorser of an instrument, the fact that a specified negotiable instrument, upon proper proceedings taken, has not been accepted or has not been paid and that the party notified is expected to pay it. o Notify inform, let know, tell o Obliteration destruction, cancellation; removal/erase (a writings or other markings) o Per procuration an indication that a person signed only the instrument as requested.

o Personal defense enforce against the defendant, but not available against a holder in due course. o Plead make appeal in the court o Pledgee - a person to whom a pledge is givens o Pledgor A person who deposits property as a pledge. o Post-dating affixing or assigning date later than actual date of issuance of an instrument o Precedent example, guideline, pattern, standard, criterion. o Preclude prevent o Presentation exhibition, exposition, show, exposure, production o Prima facie from Latin word meaning at first look or on its face; rebuttable presumption o Proceedings steps taken in legal action, legal process o Procuration the act of appointing someone as an agent or attorney-in-fact. o Protest formal formal instrument executed by a notary public or other competent person certifying that the facts necessary to the dishonor of the instrument (foreign bill) by non-acceptance or non-payment have taken place. o Purport meaning, significance, reason, intention, purpose. o Qualified limited o Real defense one that attaches to the instrument itself and can be set up against the whole world including a holder in due course. o Reasonable understandable, proper, justifiable o Recourse resorting to possible source of help o Remote distant, set apart o Renounce consent formally to abandon; surrender; give up; repudiate; deny; discard. o Revocable capable to call back or cancel o Signature by procuration the act of appointing anther as ones agent or attorney and which operates as a notice that an agent has a limited authority to sign. o Signification indication, representation, manifestation o Spoliation an alteration mad by a stranger to the instrument o Subsequent succeeding, following, next o Subsisting existing o Surety security; person undertaking to be liable for anothers default o Tenor content, substance, intention, purport, purpose o Ultra vires Latin term, which means, beyond powers. o Unconditional absolute, unqualified, conclusive, unlimited o Valid having legal force; effective, well-grounded; lawful o Value any consideration sufficient to support a simple contract. o Void not legally binding and is worthless o Waiver a voluntary and intentional relinquishment/abandonment of something, especially some known rights.