Good Faith Acquisition Of Right Of Negotiable Instruments

In the modern society, to be the paying and credit method closely connected to the commercial transaction, the negotiable instrument gets big influence. To a large extent, the effect of the negotiable instrument relies much upon its highly efficient transaction. In order to ensure its transaction, the related laws design many systems to protect it, including the good faith acquisition of the negotiable instrument. Since we did not find so many legislations about this issue, it is very valuable to conduct research on the related theory. There is four chapters in this thesis, which includes the following:Chapter I includes the general introduction of the Good faith acquisition of right of negotiable instruments. The author conducts research on the definition of the good faith acquisition of right of negotiable instruments, the character of the good faith acquisition of right of negotiable instruments and the legislation of the good faith acquisition of right of negotiable instruments. As to the definition of the good faith acquisition of negotiable instruments, the author holds that there is no substantial difference among those arguments of scholars. In this perspective, the author puts forwards her own definition about the good faith acquisition of negotiable instruments. Most scholars argue that the character of the good faith acquisition of negotiable instruments should be accepted originally. But the author holds that owning to the defenses system in the good faith acquisition of negotiable instruments, there is no need to differentiate its origin.Chapter II mainly talks about the jurisprudential foundation of the good faith acquisition of right of negotiable instruments, which means the security of transaction. Generally speaking, the majority of the legal scholars agree that the character of good faith acquisition of negotiable instruments relies upon the security of the transaction. Basing on what mentioned above, the author furthers the analysis and argues that the necessity of the security of transaction and its jurisprudential theory. In such a modern society, whenever there is some clash between the security of transactions and other security needs, what the law should prefer is the former.Chapter III concerns the constitute element of the good faith acquisition of right of negotiable instruments. There is no consensus about the constitution of the good faith acquisition of negotiable instruments. Some scholars argue that there are only 4 constitutes of the good faith acquisition of negotiable instruments:1,the payee share no legal right upon the negotiable instruments;2,the payer should transact the instruments according to those related laws;3,there is no malice or gross negligence of the payee;4,fair consideration . Some other scholars argue that there is another material element should be added plus those four elements mentioned above, which is the continuums of the endorsement. And still other scholars sign high praise for except those 5 constitutes mentioned above, we should add the sixth element, i.e., the fact of losing the possession of the negotiable instruments. As far as the author's concern, this requirement is very necessary since the payee should receive a complete instrument. Judging from the reasonableness of the theory of 5 constitutes, the author make a deep analysis on such theory and explain it in details.Chapter IV relates to the legal effect of the good faith acquisition of negotiable instrument. In this chapter, the author talks about the legal effect of the good faith acquisition of negotiable instrument from the following 3 parts, i.e., the legal effect on the payee, the legal effect on the original right holders and the legal effect on the payer. As to those payees, the construction of the good faith acquisition of negotiable instrument results in their acquisition the right on the instrument, but at the same time, they should bear the responsibility to face the defenses against their right. As to those original right holders, the existence of the good faith acquisition of negotiable instrument make them lose their right on the instrument, but on the other hand, they get the right to claim damage from those payees.