On the back of an envelope, Phoebe writes, "I promise to pay Quint or bearer $600 on de-mand. [Signed] Phoebe." What type of instrument is this? Is it nego-tiable? If not, why not?
?This instrument is a promissory note and a bearer note, and it is negotiable. A promissory note is an instrument with two parties: a maker and a payee. The maker of this note is Phoebe. The payee is "Quint or bearer." A note that is payable to a specific payee "or bearer" is a bearer note. To be negotia-ble, an instrument must be in writing, be signed by the maker or drawer, be an unconditional promise or order to pay, state a fixed amount of money, bee payable on demand or at a defi-nite time, and be payable to order or to bearer (unless it is a check). This instrument meets all of these requirements. It is hand-written on the back of an enve-lope, which has permanence and is transferable. The maker signed it. Its payment is not conditional and includes the maker's definite promise to pay. Also, "$600" is a fixed amount payable in money, and the instrument is payable on demand and to "bearer."
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