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Terms Used In 13 Guam Code Ann. § 3306

  • Contract: A legal written agreement that becomes binding when signed.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
Unless he has the rights of a holder in due course any person takes the instrument subject to
(1) All valid claims to it on the part of any person; and
(2) All defenses of any party which would be available in an action on a simple contract; and

(3) The defenses of want or failure of consideration (Section 3408), nonperformance of any condition precedent, nondelivery, or delivery for a special purpose; and
(4) The defense that he or a person through whom he holds the instrument acquired it by theft, or that payment or satisfaction to such holder would be inconsistent with the terms of a restrictive indorsement. The claim of any third person to the instrument is not otherwise available as a defense to any party liable thereon unless the third person himself defends the action for such party.

§ 3307. Burden of Establishing Signatures, Defenses and Due
Course.
(1) Unless specifically denied in the pleading each signature on an instrument is admitted. When the effectiveness of a signature is put in issue

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13 Guam Code Ann. UNIFORM COMMERCIAL CODE
DIV. 3 COMMERCIAL PAPER

(a) The burden of establishing it is on the party claiming under the signature; but
(b) The signature is presumed to be genuine or authorized except where the action is to enforce the obligation of a purported signer who has died or become incompetent before proof is re- quired.

(2) When signatures are admitted or established, production of the instrument entitles a holder to recover on it unless the defendant establishes a defense.

(3) After it is shown that a defense exists a person claiming the rights of a holder in due course has the burden of establishing that he or some person under whom he claims is in all respects a holder in due course.
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CHAPTER 4
LIABILITY OF PARTIES