Life Skills Assignment
Abstract
The case under consideration analyzes legal consequences of a situation, which occurred between three parties and was related to usage such financial instrument as a check. Performance of all interested parties in the case has been analyzed. Legal preconditions of potential court have been studied. It has been proven that an initial owner of the check has a right to sue another party and receive financial compensation. In order to prove the initial owner’s positions in the court, a specific legal case has been studied. The case dealt with the similar situation and has created a precedent for future legal considerations.
Life Skills Assignment #2
Case title & citation
To start background information about the case under consideration should be provided. The check, written by Maggie Grimes, was payable to “cash”. It means that the check has not identified a specific payee. The check was for $1 000.00. That check has been lost by Maggie. It was found by Glenn, who delivered the check to Carol for the purpose of paying off own debt. Carol signed the check and deposited it into her bank. This situation has put forward the following legal issues:
Whether the check under consideration is a bearer or order instrument?
Whether Glenn’s delivery of the check to Carol was a valid operation?
What type of financial instrument did Carol made after endorsing the check?
Is Carol or Glenn a bona fide purchaser in this case? What legal significance does this would have?
If Maggie sues Carol and Glenn, does Maggie have the right to recover the $1,000.00 from Carol and/or from Glenn?
The financial instrument under consideration is check. The check is a bearer instrument, since it is payable to any person, who posses the instrument. As a result, the check does not record any name or other personal information. When Maggie losses the check, she transfers ownership to the person who picks it up – Glenn. Maggie has to endorse the check in order to secure the ownership. Glenn received the check to the drawer – the bank, and it was a valid negotiation and treaty. All the required legal procedures have been followed. After Carol signed the check, she made it an order financial instrument, since it had a name and personal information after that.
A bona fide purchaser refers to an innocent person, who purchases a property without notice of any other party’s claim to that property. Of course, Carol is a bona fide purchaser, since she did not know about a real owner of the check and its initial purpose. Glen cannot be considered a bona fide purchaser, since he knew about possible real origin of the check. Maggie can sue Glen to recover her financial losses. However, Carol and bank cannot be sides in a court, since operations with them were legal. The only person to sue and require financial compensation is Glenn.
The similar cases have already happened in the past. Their results …
