George was the maker of a written promissory note that stated that $500 would be paid on the sale of George's automobile. George initialed the note instead of writing his full name. The promissory note stated that it would be payable six months from the
date. The promissory note was not dated. You now have come into possession of this note. Is this note negotiable? Discuss the elements of negotiability and whether each one has been met.
This note is not negotiable. For an instrument to be negotiable, a series of elements must be satisfied. First, the note must be written. This promissory note was written. The note must be signed by the maker or drawer. George as the maker of the note has signed the document (his initials are sufficient). The exact wording of the note is unknown, but we could assume that the appropriate language establishing a promise to pay a sum certain ($500 ) in money is present. An unconditional promise or order to pay must exist. George left the payment contingent on the sale of his automobile, and therefore does not meet this requirement. The note must be payable on demand or at a definite time. The date of maturity of the note is not known, for it refers to a six-month time period with no established starting point. When a date is missing from commercial paper, it is deemed dated on the day that it is issued to the payee. Any holder may add the correct date.?
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