Negotiable Law

Individual Assignment-Negotiable Instrument
Faison Alexander
BUL2131-Applied Business Law
November 10, 2012
Karen Inniss

Individual Assignment-Negotiable Instrument

You are interested in buying a new car and Bob lets you embrace one of the new cars on his lot for a week to test drive (Miller, 2011). You decide you like the car and when you cut a line Bob to drop off the car, he hands you the succeeding(a) document and a pen (Miller, 2011):
I scream to give birth to the order of Bobs Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum (Miller, 2011).
What type of instrument is this? Does this instrument affect the requirements for negotiability under the UCC (Miller, 2011)?
The instrument for this type of transaction is a promissory none, simply meaning that it is a pen promise surrounded by the maker and the payee (Miller, 2011). The promissory note can be paid at a decisive time or at pick out (Miller, 2011). In order for it to be a transferable instrument under the UCC it must(prenominal) meet the following requirements (Miller, 2011):
1. It must be in writing
2. It must be signed by the maker or the drawer
3. It must be an unconditional promise or order to pay
4. It must state a obdurate amount of money
5.



It must be payable on necessitate or at a definite time
6. It must be payable to order or to bearer, unless it is a check
After conservatively reviewing the stated note it lacks two very important requirements to kick downstairs it as a negotiable instrument. Although it did meet the standards for negotiability because it was in written form and had the necessary substance to deem it written, the instrument does not meet the requirements for negotiability under the UCC because it does not state a definite time payment is due or a demand for payment.



Reference
Miller, R. L., (2011). Business law text & exercises. (6th ed.) South-Western, Cengage Learning.If you want to get a full essay, order it on our website: Orderessay



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