Law Commons^™

Bills And Notes - Negotiability - Accelerating Factors Extraneous To Instrument

Michigan Law Review

Plaintiff was a good faith purchaser of a trade acceptance payable at a fixed date with a provision for acceleration at the option of the holder [1] " . . . upon the acceptor hereof suspending payment, [2] giving a chattel mortgage, [3] suffering a fire loss, [4] disposing of his business or [5] failing to meet at maturity any prior trade acceptance." In an action by the plaintiff after the fixed date of maturity, defendant-acceptor contended that accelerating provisions 3 and 5 rendered time of payment uncertain and the instrument non-negotiable. Held, the trade acceptance was negotiable. People's …