Expain whether each of the following would be negotiable or not negotiable
a. A check with the amount payable omitted.
b. A draft for 3,000 bushels of corn.
c. A check written in pencil on a paper towel.
d. A note stating that it is secured by a mortgage on a specified parcel of land.
e. A note stating "IOU fifty dollars."
a . The incomplete check is not negotiable, but it becomes negotiable as soon as it is completed..
b. The draft is not negotiable, because 3,000 bushels of corn is not a fixed amount in money as required by the Code.
c. This is negotiable under the UCC, because it meets the requirements of a writing as an intentional tangible expression.
d. The reference to the mortgage does not destroy negotiability.
e. The IOU is a mere acknowledgment of an obligation. The note is not negotiable, because it does not contain an unconditional promise or order to pay within the meaning of the Code.
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What will be an ideal response?
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