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Hello Mr Mike – It’s me again … There are a few points that id like to clarify regarding these topics .
1- Are Model Laws part of public international law or is it private international law ?
2- Who exactly passes the law – the legislative or executive body ?
3- the definition of international bill of exchange states that it should pay a definite sum of money . does this criteria always have to be met ? as blank cheques don’t specify an amount but are considered bill of exchange ?Thank you : )
Model laws are not really laws at all! They are models / blueprints / guides / proformas designed by international organisations such as the United Nations and are created with the intention that independent states may use the model as a guide when the state is creating its own equivalent law
As stated, the model laws are not ‘passed’ as such. They are non-binding and really are advisory, issued as suggestions as to how states in the future, wishing to design their own domestic law on the relevant subject matter, can use the model law as an initial (or even ‘final’) draft
Blank cheques! In all my years of being involved in the teaching of Law for the accountancy qualifications, I have never been asked this, and nor have I ever considered this question. Your source obviously states that a blank cheque IS a bill of exchange, even though the part of the definition that specifies ‘a sum certain in money’ is clearly not satisfied.
I looked up the Bills of Exchange Act from 1882 – ‘a sum certain in money’
I looked on the Internet for International Bills of Exchange. First came a link to an Indian accountancy tuition establishment – ‘a sum certain in money’ Then came a definition – ‘a sum certain in money’. This was followed by a section of parts of the definition and, again, we have ‘a sum certain in money’I asked the question of AI. And there, and only there, did I find that a blank cheque IS a bill of exchange EVEN THOUGH it clearly fails to satisfy the definition. The explanation is that, even though on issue the sum in money is not specified, it can, subsequent to issue, be completed by inserting the appropriate amount and then it satisfies the definition.
2 questions are now raised in my mind!
1 – what is it BEFORE the amount is written in subsequent to issue? and
2 – what drawer or drawee would write / accept such a bill drawn without the amount involved being specified?I hope that this has helped!
Oh. Okay Mr Mike . Yup it helped a lot . The last two questions are interesting 🙂 Thank you for clarifying these topics !!!
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