On a sheet of paper, Elle writes, without her signature, "I acknowledge that I owe Frank $600, payable out of the proceeds of the sale of my car, a 1995 Honda Civic, which I promise to advertise ‘For Sale' next week. Payment is to be made on or before six months from today." What type of instrument is this? Is it nego-tiable? If not, why not?
This instrument is a promissory note, but it is nonnegotia-ble. A promissory note is an instrument with two parties-a maker and a payee. The maker of this note is Elle. The payee is Frank. The note is nonnegotiable because (1 ) Elle did not sign it; (2 ) it does not include a defi-nite promise to pay but only acknowl-edges that a debt is owed; (3 ) it is un-dated, which means that the end of the six-month period is uncertain, making the note not payable at a definite time; and (4 ) it is payable only to Frank, not to his order or to bearer. Any of these alone would make the note nonnegotiable. (Pay-ment is also conditioned on the sale of Elle's car, but this does not make the note nonnegotiable.)
You might also like to view...
Credence qualities of a service are difficult to evaluate before purchase, but easy to evaluate after consumption
Indicate whether the statement is true or false
Distinguish between the three distribution intensity strategies
What will be an ideal response?
________ are the most common type of sales promotion.
Fill in the blank(s) with the appropriate word(s).
What type of text should accompany a hazard alert?
A) Avoidance steps. B) The consequences of the hazards, in three to ?ve words. C) A one- or two-word identi?cation alerting the reader. D) All of the above. E) A and B.