Research On The Drawer's Authorization System Of The Blank Negotiable Instrument

With the continuous development of society, the negotiable instrument is becoming more and more important. As a kind of securities, it represents the bill and the rights on it. The negotiable instrument is also a kind of formal securities, once an essential item is lacked, the bill will be ineffective. However, in commercial practices, there is often such a situation, the drawer can't make sure the items like the amount and location when he(she) is drawing the bill, but the reality requires he(she) must do that.The general trend of the economy induces the blank negotiable instrument's appearance. Now it has been recognized as the important instruments system by many countries and international conventions. For it can protect the interest related to the transactions and the involving parties. Compared with the modern instrument law of western countries, instruments in China has been limited in the function of payment and settlement. The Negotiable Instruments Law has many disadvantages and a long distance with international instrument rules. However, China is just in a transitional period now, in the near future, as China's legal construction improving and the economy credit enhancing, instruments'circulation and credit function will become more and more important. Negotiable Instruments Law should keep a high degree with international uniformity and technical legal norms, since China has joined the World Trade Organization, the amendment for China's Negotiable Instruments Law is necessary. Therefore, research of the drawer's authorization of the blank negotiable instrument has deep significance for the improvement of Negotiable Instruments Law and the judicial practice.The first section of the main text mainly discusses the theory foundation and standard of the drawer's authorization. There are four theories about it. First, "Appoints theory"; second, "Agency theory"; third, " Authority theory"; the forth, "Contract theory". Regarding these four theories, theory foundation that the drawer's authorization was founded should adopt "Authority Theory". Because of the drawer's authorization, blank bill signing person obtains the blank additional right. There are also three theories about the standard of the drawer's authorization. They are " Subjective theory"," Objective theory " and " Compromise theory". In author's opinion, the believing standard of the drawer's authorization should take "Compromise theory". Because it can maintain the circulation of bills. Also, it can protect good intentions holder's benefits.The second section of the main text mainly discusses the nature of the drawer's authorization. First, my paper introduces the theories about it, and pinot out that the author agreed with the theory "unilateral acts". Second, it mainly talks about the differences between the common civil authorization and the drawer's authorization.The third section of the main text mainly discusses the lawful effect of drawer's authorization. Before the blank additional right exercised, the right on the blank bill shall be limited, the drawer of the blank bill will not undertake the obligations. After the drawer's authorization, the blank additional right exercised, the holder can exercise the bill rights.The protection to bill holder's right is very important when the blank additional right is abused:first, the drawer can not protest against good intentions holder; second, the drawer can protest against the holder with malicious motives or major errors; third, the drawer can protest against blank bill signing person who abused the blank additional right.The forth section of the main text mainly discusses other countries and areas negotiable instruments laws. By deep analysis and comparison, the author gives her own views.The fifth section of the main text is the focus of the whole paper. There are only articles about blank cheque in China:Article 85, "The amount on a check may be filled in afterwards by the holder with the authorization of the drawer. The check with the amount not filled in shall not be used". Article 86," If a check does not bear the name of the payee, it may be recorded after wards with the authorization of the drawer". Due to the fact that People Republic of China's(PRC) Negotiable Instruments Law, blank cheque rules are overtly simplistic and lack precision, it is very necessary for us to study the drawer's authorization.