Negotiable Instruments

You are interested in buying a brand-new car and Bob lets you borrow one of the new cars on his lot for a week to test drive. You decide you the likes of the car and when you visit Bob to drop off the car, he hands you the following document and a pen:
may 1, 201x
I annunciate to pay to the order of Bobs Auto department store $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum.
What persona of instrument is this? Does this instrument meet the requirements for negotiability under the UCC?
A compose promise between two parties is a promissory stigmatize. In order for an instrument to be negotiable, it has to meet the following requirements:
1.It mustiness be in writing.
2.It must be signed by the maker or the drawer.
3.It must be an unconditional promise or order to pay.
4.It must state a fixed amount of money.
5.It must be collectable on involve or at a definite time.
6.It must be payable to order or to bearer, unless it is a check.




(Miller & Hollowell, 2011)
An analysis of the note shows that it meets most of the requirements. The note is obviously in written do and has been prepared for a signature by the maker. There is a promise to pay the fixed amount of $20,000 and is made payable to Bobs Auto Emporium. However, the promissory note, as it is utter above, does not meet the UCC requirements because it does not include a avowal as to whether it is payable on demand or at a definite time.If you want to get a lavish essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .