What are the requirements of negotiability under the Code? List and briefly summarize them

Answer 1

1. Be in writing-printing, handwriting, typewriting, or any other intentional tangible expression is sufficient. Most negotiable instruments are written on paper, but this is not required. 2. Be signed by the maker or drawer-"signed" can be a signature, initials, an "x," thumbprint, rubber stamp, or any symbol executed or adopted with present intention to authenticate a writing. 3. Be an unconditional promise or order to pay-cannot be based on the occurrence or non-occurrence of some other event. It must be more than mere acknowledgment of a debt; it must be a promise or order to pay which identifies the person to be paid. 4. State a fixed amount of money-must be for an amount that is ascertainable from the instrument itself without reference to an outside source. The fixed amount requirement applies only to the principal, not interest. Money is a medium of exchange authorized or adopted by a sovereign government as part of its currency. 5. Contain no other undertaking or instruction. 6. Be payable on demand or at a definite time-on demand is at sight or on presentment. At a definite time can be (a) on a stated date or a fixed period after that date, (b) at a fixed period after sight or acceptance, (c) at a time readily ascertainable at the time the promise or order is issued. 7. Payable to order or to the bearer-to order is to a specific person, to bearer is the person in possession of the instrument.