SECTION 14SECTION 15SECTION 16

Mechanically incomplete but DeliveredNOTE: Incomplete Instrument not DeliveredMechanically Complete but Undelivered

RIGHTS

Maker/Drawer If its his signature he shall not be liable if it was wrongfully filled. He shall be liable if it was filled in with valid authority If its his signature he shall not be liable since it was made without authority, even against holder in due course May revoke , cancel or tear up the instrument before delivery Where the instrument is no longer in the possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved

Not a holder in Due Course Prima facie authority to fill up the blank Blank was wrongfully filleda. Not a holder in due course cannot enforce the instrument if the same is not filled up strictly in accordance with the authority given or within reasonable timeb. He can enforce the instrument as completed as against the parties subsequent to the completion but not against those prior thereto Filled within authority given: Can enforce the instrument as completed against parties prior or subsequent to the completion Invalidity is only with reference to parties whose signature appears in the same prior to delivery. As to the parties whose signature appears after delivery, it may be valid. Where the instrument is no longer in the possession of a party whose signature appears thereon, a valid and intentional delivery by him is presumed until the contrary is proved NI incomplete and revocable until delivery for the purpose of giving effect thereto. As between: a. immediate partiesb. remote party other than holder in due course

Holder in Due Course Prima facie authority to fill up the blank Can enforce the instrument as completed against parties prior or subsequent to the completion Prima facie presumption of delivery which the maker may rebut by proof of non- delivery Incomplete instruments entrusted to another who wrongfully completes and negotiates to a holder in due course: is a sufficient delivery to bind the drawer or make Conclusively presumed that the instrument was validly delivered to him and all the parties prior to him shall be liable. No delivery, no negligence or fault on the maker/drawer, there shall be no liability, because its wrongful seizure cannot create against his will a valid contract where none existed before.

DEFENSEPersonal Defense: available only to holders who are not holders in due courseReal Defense: Possible defense of a party whose signature appears on an instrument prior to delivery is that, as against him, the instrument is not valid for having been incomplete but undelivered Want of delivery of a mechanically incomplete instrument defense that can be interposed against one who is not a holder in due course and also a holder in due coursePersonal Defense Defense of a party sought to be charged is that the instrument wasnt delivered, or if delivered wasnt authorized or only on a condition or for a special purpose want of delivery of a mechanically complete instrument is a defense It can however be interposed against an immediate party and remote parties not holders in due course in as much as the presumption of valid (real defense?) intentional delivery is only rebuttable as to immediate parties and to remote parties who are not holders in due course

http://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/923-when-may-blanks-be-filled-in-a-negotiable-instrument.htmlhttp://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/925-incomplete-and-undelivered-negotiable-instrument.htmlhttp://www.batasnatin.com/law-library/mercantile-law/negotiable-instruments/926-outline-of-rules-on-delivery-of-negotiable-instruments.htmlParties standing in immediate relation i.e. parties in direct relation with each other are:1) The drawer of a bill of exchange stands in immediate relation with the acceptor.2) The maker of a promissory note, bill of exchange or cheque stands in immediate relation with the payee.3) The indorser stands in immediate relation with his indorsee and the holder. All other parties are remote.4) Other signors may by agreement stand in immediate relation with a holder.All other parties are remote.http://www.citeman.com/10809-immediate-parties.htmlIMMEDIATE PARTIES: who are immediate in the sense of having or being held to know of the conditions or limitaions placed upon the delivery of the instrument. Privity / proximityREMOTE PARTIES: who are not direct contractual relation to each other.