Negotiable Instruments in UK Law

Leading Cases
  • Westminster Bank Ltd v Hilton
    • House of Lords
    • 26 November 1926

    It is well established that the normal relation between a banker and his customer is that of debtor and creditor, but it is equally well established that quoad the drawing and payment of the customer's cheques as against money of the customer's in the banker's hands the relation is that of principal and agent. The cheque is an order of the principal addressed to the agent to pay out of the principal's money in the agent's hands the amount of the cheque to the payee thereof.

  • Marfani & Company Ltd v Midland Bank Ltd
    • Court of Appeal (Civil Division)
    • 21 March 1968

    But such is the common law of England, and one of the consequences of the historic origin of the tort of conversion and its application to negotiable instruments as "goods" is that the tort at common law is one of strict liability in which the moral concept of fault in the sense of either knowledge by the doer of an act that it is likely to cause injury, loss ordamage to another, or lack of reasonable care to avoid causing injury, loss or damage to another, plays no part.

    At common law one's duty to one's neighbour who is the owner, or entitled to possession, of any goods is to refrain from doing any voluntary act in relation to his goods which is a usurpation of his proprietary or possessory rights in them.

  • R v Charles
    • Court of Appeal (Criminal Division)
    • 29 June 1976

    On the back is written the following: "The issuing Banks undertake that any cheque not exceeding £30 will be honoured subject to the following conditions: a. The signature on the cheque must correspond with the specimen signature on this card. The cheque must be drawn on a bank cheque form bearing the code number shown on this card." The cheque must be drawn before the expiry date of this card. The card number must be written on the reverse of the cheque by the payee."

  • R v Page (Note)
    • Court of Appeal (Criminal Division)
    • 26 January 1971

    (1) That the drawer has an account with that bank; (2) That he has authority to draw on it for that amount; (3) That the cheque, as drawn, is a valid order for the payment of that amount (i.e. that the present state of affairs is such that, in the ordinary course of events, the cheque will on its future presentment be duly honoured).

  • R v Lambie
    • Court of Appeal (Criminal Division)
    • 30 July 1980

    We would pay tribute to the lucidity with which the learned Judge presented to the jury the law which the House of Lords had declared in relation to deception in a cheque card transaction. If that analysis can be applied to this credit card deception, the summing-up is faultless. But, in our view, there is a relevant distinction between the situation described in Charles ( supra) and the situation devised by Barclays Bank for transactions involving use of their credit cards.

  • R v Kohn
    • Court of Appeal (Criminal Division)
    • 28 June 1979

    For purposes of this case it seems to us that that sufficiently constitutes a debt within the meaning of the word as explained by Lord Reid. It is a right of property which can properly be described as a thing in action and therefore potentially a subject of theft under the provisions of the 1968 Act. The cheque is the means by which the theft of this property is achieved. The completion of the theft does not take place until the transaction has gone through to completion.

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Books & Journal Articles
  • Advance fee fraud: the big lie
    • Nbr. 2-4, January 1995
    • Journal of Financial Crime
    • 283-289
    Negotiable instruments by means of which large sums of money are transferred between banks have long been a source of fascination to the more sophisticated fraudsman. Careful study of the instrumen...
    ......ABSTRACT Negotiable instruments by means of which large sums of money are transferred between ......
    • Nbr. 40-2, March 1977
    • The Modern Law Review
    Book reviewed in this article: Cases and Materials on Family Law. By Peter Seago and Alastair Bissett‐Johnson. The Law of Habeas Corpus. By R. J. Sharpe. Industrial Relations and the Limits of Law....
    ...... BRIAN HARVEY. INTRODUCTION TO NEGOTIABLE INSTRUMENTS. By 0. MCLOUGHLIN. [Butterworths. 1975. 202 pp. ......
  • Dead fish across the trail: illustrations of money laundering methods
    • Nbr. 8-4, October 2005
    • Journal of Money Laundering Control
    • 305-319
    Uses examples from US case law to illustrate how money laundering has been attempted in the past. Details a large number of specific methods: cash couriers, cash conversion, safe deposit facilities...
    ......NEGOTIABLE INSTRUMENTSIn United States v Gwiazdzinski128the defendant, alawyer, ......
    • Nbr. 23-3, May 1960
    • The Modern Law Review
    Book reviewed in this article: The Child And The Court. By W. E. Cavenagh Alexander Maconochie Of Norfolk Island. By The Honourable Mr. Justice John Vincent Barry. Archbold'S Pleading, Evidence & P...
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Law Firm Commentaries
  • LCs, demand guarantees, negotiable instruments and COVID-19
    • JD Supra United Kingdom
    Key points - Under English law, in the current circumstances, or if the current situation significantly deteriorates...
  • New ICC Rules For Forfaiting
    • Mondaq United Kingdom
    ...... trade finance which originally simply involved the purchase of negotiable instruments on a non-recourse basis. It was primarily used to finance ......
  • Further Reference To CJEU On Card Handling Charges
    • Mondaq United Kingdom
    ...... deposit and current account payments, checks, and other negotiable instruments in the Council Directive 2006/112/EC. The Tribunal found ......
  • Are Cryptoassets Property Under English Law?
    • Mondaq UK
    ...... paper focuses on the legal characterization of these instruments themselves. In this article, we consider how cryptoassets can be defined ...It is possible to acquire good title to a negotiable instrument from a thief!5 This is the feature that allows transactions in ......
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  • Chapter TSEM6016
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... - bank balances. - copyright. . . - negotiable instruments. - patents. . . - holdings in companies. ......
  • Chapter IHTM14885
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    • HM Revenue & Customs
    .... . . Negotiable instruments, such as bearer securities, are transferable by delivery. Note ......
  • Chapter CTM49480
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    ...... within the scope of the Accrued Income Scheme because they are negotiable interest bearing instruments. The Accrued Income Scheme was repealed for ......
  • Chapter SAIM4040
    • HMRC Guidance manuals
    • Formularios de Derecho Civil, Mercantil y Registral
    • HM Revenue & Customs
    ......The AIS applies to all kinds of negotiable interest bearing stocks and bonds. ITA07/S619 defines ‘securities’ as ... virtually all forms of negotiable interest bearing financial instruments (including gilts) are brought within the AIS, unless specifically ......
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