On The Bills Defense

Negotiable instruments counterplea means the behavior that the party who is consigned by holder of bills requests for payment against drawer's antagonizing or protesting payment according to specific situation. As a fundamental act of the Negotiable Instruments Law, negotiable instruments counterplea can balance the legal obligations and rights of negotiable instruments; restrict legal rights abuse; facilitate harmony of legal environment and economic development.By introducing fundamentals of negotiable instruments counterplea, this thesis not only reviews traditional negotiable instruments classification but also introduces new classification method by which it provides detail analysis of three types of negotiable instruments counterplea: the counterplea based on contents of negotiable instruments, the counterplea based on material defect of the establishment of debt on negotiable instruments and extinction of rights of negotiable instruments, the counterplea based on causative condition and special stipulation. It also discusses onus probandi and restriction in negotiable instruments counterplea.Negotiable instruments counterplea has a tight binding with a nation's economic development. The less economic development and lower level of liberal economy, the more regulations on negotiable instruments. The negotiable instruments counterplea will become less and less along with improvement of commercial credibility in modern society. However, in China the negotiable instruments market is in developing, people have less endurance of negotiable instruments. Therefore, it takes time to develop an effective legal environment for negotiable instruments. Nevertheless, as the basic function of negotiable instruments, the circulation of negotiable instruments plays important role in economic development regardless whether there is a perfect current legal environment. To promote circulation of negotiable instruments and boost utilization of negotiable instruments' financing function, this thesis gives enaction of negotiable instrument laws such suggestions: amend the 1st item No. 10 clause in law of negotiable instruments; shrink the scope of counterplea of ineffective negotiable instruments; enhance the restriction of counterplea of unauthorized agency on negotiable instruments.