Fraud in the Factum is a type of fraud where misrepresentation causes one to enter a transaction without accurately realizing the

risks, duties, or obligations incurred. [1] This can be when the maker or drawer of a negotiable instrument, such as a promissory note orcheck, is induced to sign the instrument without a reasonable opportunity to learn of its fraudulent character or essential terms. Determination of whether an act constitutes fraud in the factum depends upon consideration of all relevant factors. Fraud in the factum usually voids the instrument under state law and is a real defense against even an holder in due course. Contrast this with the situation where a trusted employee signs a check without permission. The employer must still honor the check despite the fact that the check was a fraudulent negotiable instrument. Here, the employer had a reasonable opportunity to avoid the obligation by restricting access to the checks. Fraud in the factum is often contrasted with fraud in the inducement. Fraud in the factum is a legal defense, and occurs where A makes/signs an agreement, but either does not realize that it is supposed to be a contract, or does not understand the nature/content of the agreement, because of some false information that B gave to A. For example, suppose John tells his mother that he is taking a college course on handwriting analysis, and for his homework he needs her to read and sign a pretend deed. If Mom signs the deed believing what he told her, and John tries to enforce the deed, Mom can plead "fraud in the factum." Fraud in the inducement is an equitable defense, and occurs when A enters into an agreement, knowing that it is supposed to be a contract and (at least having a rough idea) what the agreement is about, but the reason A signed/made the agreement was because of some false information that B gave to A. For example, suppose John tells his mother to sign a deed giving him her property, Mom refuses at first, but then John falsely tells her that the bank will foreclose on the property unless she signs it over to him. If Mom signs the deed because of this statement from John, and John tries to enforce the deed, Mom can plead "fraud in the inducement." In Boro v. Superior Court, 163 Cal. App. 3d 1224 (1985), the defendant called up the victim saying he was "Dr. Stevens" from the hospital and that the victim had a life-threatening disease. He further presented 2 options for treatment: option one was to have a painful surgery costing the victim $9,000; option 2 was to have sex with an anonymous donor costing the victim only $1,000. The victim had intercourse with the defendant believing at the time that her life was threatened and that was the only choice she had to cure the disease. The victim later, upon learning the truth, brought the charges against the defendant for rape. The court held this was fraud in the inducement and therefore there was no rape. It was fraud in the inducement because the deception related not to the thing done - the sexual intercourse - but merely to some collateral matter (cure from a life-threatening disease).

In jurisprudence, duress or coercion refers to a situation whereby a person performs an act as a result of violence, threat or other pressure against the person. Black's Law Dictionary (6th ed.) defines duress as "any unlawful threat or coercion used... to induce another to act [or not act] in a manner [they] otherwise would not [or would]". Duress is pressure exerted upon a person to coerce that person to perform an act that he or she ordinarily would not perform. The notion of duress must be distinguished both from undue influence in the civil law and from necessity.

Duress has two aspects. One is that it negates the person's consent to an act, such assexual activity or the entering into a contract; or, secondly, as a possible legal defense or justification to an otherwise unlawful act.[1] A defendant utilizing the duress defense admits to breaking the law, but claims that he/she is not liable because, even though the act broke the law, it was only performed because of extreme unlawful pressure.[2] In criminal law, a duress defense is similar to a plea of guilty, admitting partial culpability, so that if the defense is not accepted then the criminal act is admitted. Duress or coercion can also be raised in an allegation of rape or sexual assault to negate a defense of consent on the part of the person making the allegation.

[Latin, For so much; for as much as one is able; as far as it can go.] A term that refers to a partial payment made on a claim. In an Eminent Domain case, pro tanto describes the partial payment made by the government for the taking of land. This payment is given Without Prejudice, and the petitioner can maintain an action for the full amount of the land. A pro tanto defense is a defendant's counter-claim against the plaintiff for one-half the requested damages.
West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

pro tanto (proh tahn-toe) Latin for only to that extent. Example: a judge gives an order for payments for
one year, pro tanto. In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal(and all remaining interest) is due to be paid. The term fixed maturity is applicable to any form of financial instrument under which the loan is due to be repaid on a fixed date. This includes fixed interest and variable rate loans or debt instruments, whatever they are called, and also other forms of security such as redeemable preference shares, provided their terms of issue specify a date. It is similar in meaning to 'redemption date'. However some such instruments may have no fixed maturity date. Loans with no maturity date continue indefinitely (unless repayment is agreed between the borrower and the lenders at some point) and may be known as 'perpetual stocks'. Some instruments have a range of possible maturity dates, and such stocks can usually be repaid at any time within that range, as chosen by the borrower. A serial maturity is when bonds are all issued at the same time but are divided into different classes with different, staggered redemption dates. In the financial press the term maturity is sometimes used as shorthand for the securities themselves, for instance In the market today, the yields on 10 year maturities increased means that the prices of bonds due to mature in 10 years time fell, and thus theredemption yield on those bonds increased.

On presentation At sight After sight: The maturity of a promissory note or bill of exchange is the date on which it falls due. Instrument marked at sight and on presentation means payable on demand. Though instruments marked at sight and on presentation means payable on demand, yet they differ as regards calculation of limitation period under the Limitation Act 1963. In case of instrument payable at sight, the period of limitation is three years from the date when the bill is presented for payment. In the case of instrument payable on demand the period of limitation is three years from the date of the bill or note. Instrument marked after sight or after date in a promissory note means after presentment for sight, and in a bill of exchange means after acceptance or noting for non-acceptance or protest for non acceptance. As discussed above, promissory notes and bills of exchange cannot be drawn conditional. Mere mention of the words after sight or after date will make the instrument conditional on account of uncertainty of is maturity and therefore a bad instrument. Words after sight or after date have to be specified with exact period sixty days after sight or three months after date. In a promissory note, the words after sight mea presentment for sight, for example the payment on a note ca be demanded only after it has been exhibited to the maker of the note, as no acceptance is required in a note. However, a bill which requires acceptance the words after sight mean that no payment can be demanded on the bill till the bill is exhibited for acceptance or having been dishonored after noting for non-acceptance or after protest for non-acceptance. Days of grace: Every promissory note and bill of exchange which is not expressed to be payable on demand or at sight or on presentment is at maturity on the third day, for example it is entitled to three days grace after the day on which it is expressed to be payable. A cheque is always payable on demand. It is not entitled to any days of grace. Similarly instruments payable on demand or at sight or on presentment are also entitled to three days of grace. Thus, only following instruments are entitled to days of grace: 1) bills and notes payable on a specified day; 2) bills and notes payable at a certain period after date or after sight; 3) Bills and notes payable at a certain period after the happening of a certain event. In case of bills and notes payable in installments three days of grace is allowed on each installments where days of grace are allowed, instruments must be presented for payment only on the last day of grace. Illustrations>>

a) A bill dated 30th November is made payable three months after date. It falls due on 3rd March. b) A note dated 1st January is payable one month after sight. It falls due on 4th February. Calculating maturity of a bill or note Payable so many months after date or sight: In calculating maturity of a bill or note made payable at a stated number of months after date or after sight, or after a certain event, the period stated shall be held to terminate on the day of the month which corresponds with the day on which the instrument is dated, or presented for acceptance or sight or noted for non acceptance or protested for non acceptance or when the event happens. If the month in which the period would terminate has no corresponding days, the period shall be held to terminate on the last day of such month. Illustrations>> a) A negotiable instrument, dated 19th January, 1878 is made payable at one month after date. The instrument is at maturity on the third day after 28th February, 1878. b) A negotiable instrument dated 30 th August, 1878 is made payable three months after date. The instrument is at maturity on the 3 rd December, 1878. c) A promissory note or bill of exchange dated 31 st August, 1878 is made payable three months after date. The instrument is at maturity on the 3 rd December, 1878. Payable so many days after date or sight: In calculating the maturity of a bill or note payable, a certain number of days after date or after sight, or after a certain event, the day of the date or presentment for acceptance or sight shall be excluded. In other words, the day from which the time is to run is to be excluded. When day of maturity is a holiday: When the day on which a promissory note or bill of exchange is at maturity is a public holiday, the instrument shall be due on the next day preceding business day.

Definition of 'Maturity Date'

The date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due and is repaid to the investor and interest payments stop. It is also the termination or due date on which an installment loan must be paid in full.

Investopedia explains 'Maturity Date'