Rule Of Risk-bearing In The Process Of Instruments Negotiation

As a kind of valuable securities, a negotiable instrument has following functions: settling accounts, payment, financing and credit. The realization of these functions and the extent of realization in reality, which are not only deeply connected with credit of the person liable for a negotiable instrument but also with risk-bearing, depend on the wide use of the negotiable instrument and people's willing to use and accept.Based on current legal system of negotiable instruments and the practice of use and dispute settlement of instruments, this article compares the foreign legal systems of instruments and deeply probes into the legal risk of negotiation of instruments and the risk-bearing in the course of negotiation along with the analyzing of legal essentials of validity of negotiation of instruments. This article consists of six parts except preface and tag.Section one:"Outline of the negotiation of negotiable instruments and risk-bearing". This part discusses the legal risk of instruments transfer through the juristic act of instruments.Based on the common theory of validity of juristic act, section two, three and four analyzes the risk-bearing when the juristic act of a negotiable instrument lacks formal essentials, substantial essentials or delivering respectively. As a kind of formal securities, the holder's right of a negotiable instrument will be fully realized only when there is no defectiveness in instruments. The juristic act of an instrument will be void if the essentials of validity lacks. Besides, an instrument might be null and void if it lacks the formal essentials, which differs from the civil juristic act. When the holder claims his right, the person liable for a negotiable instrument may set up defenses against the holder, which means that the holder will face the risk of failing to realize his rights.Section five:"Risk-bearing of forgery and alteration of a negotiable...