Elements of a Negotiable Instrument

Mar 29th, 2015
Studypool Tutor
Price: $10 USD

Tutor description

Elements of a Negotiable Instrument

Word Count: 470
Showing Page: 1/5
Elements of a Negotiable InstrumentNameClassDateProfessorElements of a Negotiable Instrument A negotiable instrument is a written promise where one part agrees to provide payment in the form of a security for the purchase of an item or service. According to the UCC the negotiable instrument refers to a written document where there is a promise to pay a fixed amount of money. In order for it to be considered a negotiable instrument is must be signed by the payee and dated to establish future payment. For example a check or a cashier's check would be a negotiable interest as well as a promissory note. When a note provides a promise of payment for the amount of $20,000 and guarantees a 7% interest it is considered a promissory note and therefore it becomes a negotiable instrument. The promissory note meets that a written promise because it provides a specific promise, is payable to a bearer, and a date and the individual buying the car from Bob has signed the agreement. The negotiable instrument does not refer to payment to be received at time of purchase but instead refers to a later date when payment will be paid (Kosar, 2005). Cash is nonnegotiable because the purchase is completed once the money is exchanged for the product or service. ReferencesKosar, W. (2005). Negotiable Instruments Law. Retrieved February 5, 2012 from http://www.centralbank.gov.af/pdf/NI%20LAW%20Handbook%20Eng.pdfNegotiable Instrument and

Review from student

Studypool Student
" Solid work, thanks. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1820 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors