Liability and Discharge in Instruments

These flashcards cover key terms and concepts related to liability, discharge, and various property rights as discussed in the lecture.

Liability on Instruments

The obligation a party has concerning the payment or honor of financial instruments.

Signature Liability

The liability arising from a signature on a financial instrument, holding the signer accountable.

Warranty Liability

Liability that arises from the assurance provided in a transfer regarding the status of an instrument.

Primary Liability

The obligation to pay a financial instrument regardless of any other considerations.

Secondary Liability

The obligation to pay if the primary obligor fails to do so.

Transfer Warranties

The guarantees made by a party transferring an instrument regarding its validity and status.

Presentment Warranties

Guarantees linked to presenting an instrument for payment or acceptance.

Risk of Loss

The likelihood of losing the value attributed to an instrument due to non-performance or dishonor.

Discharge of Liability

The process through which a party is released from their obligations under a financial instrument.

Payment or Tender of Payment

Discharges liability when fulfillment of payment is made to the appropriate party.

Easement by Necessity

An implied right allowing one party access across another's property for practical use.

Fee Simple Absolute

The most complete interest in real property, encompassing all rights of ownership.

Possessory Interest

An interest that provides the right to possess and use property.

Joint Tenancy

A form of concurrent ownership where co-owners share rights to the entire property, with rights of survivorship.

Tenancy in Common

An ownership structure where two or more persons hold an undivided interest in a property.