Bills in a broad sense include all kinds of securities and vouchers, such as stocks, corporate bonds, invoices, bills of lading and so on. In a narrow sense, bills are "bills" stipulated by Bill Law, including bills of exchange, promissory notes and checks. The legal act of the parties to a bill "signing or sealing the bill" is a bill act. So what are the conditions for the establishment of bill behavior?

Conditions for the establishment of bill behavior

There are three conditions for the establishment of bill behavior, namely:

The bill actor must have full capacity for civil conduct, that is, at least 18 years old, and a citizen with mental health can become a bill actor. If he is a minor or a mentally ill person, he cannot be an actor in the bill. If a person with no capacity for civil conduct or a person with limited capacity for civil conduct signs a bill, his signature is invalid, resulting in the bill being invalid. For example, A issues a bill to B, then B becomes a person without civil capacity because of mental illness, and then B transfers the endorsement of the bill to an unsuspecting C. When the bill expires, C prompts to refuse to pay. Because B is a person without civil capacity, the signature is invalid, so C does not enjoy the bill rights. Then the actor's expression of will must be true, and the bill should be legally obtained, because the bill obtained by "fraud, theft, coercion, malice or gross negligence" will lose the bill rights. The acquisition of bill rights is conditional. The first is to pay the consideration, that is, the corresponding price recognized by both parties to the bill. Of course, if the bill can be obtained free of charge according to law due to taxation, inheritance or gift, there is no restriction on the payment of consideration, but the rights enjoyed by the bill shall not be superior to those enjoyed by the predecessor.

Second, the content of bill behavior must comply with the provisions of laws and regulations. Legality here refers to the behavior of bills, such as the legal contents recorded, but whether the basic relationship of bills is legal or not has nothing to do with it.

Three, bill behavior must conform to the statutory form.

What is endorsement?

Endorsement is the act of transferring the rights of bills to others. When endorsing, the relevant matters should be recorded on the back of the bill or on the post-it note and signed. After the endorsement and transfer of the bill, all the rights on the bill are transferred from the endorser to the endorsee, and the endorsee obtains the rights on the bill and becomes the holder of the bill.