Is the following a negotiable instrument? Why or why not? “I promise to pay to the...
- Is the following a negotiable instrument? Why or why not?
“I promise to pay to the order of Friendly Credit Union the sum of $10,000 in monthly installments on the 1st of each month commencing February 1, 2017 plus interest of 6% per annum. (Signed) Larry Smith, January 17, 2017.
Homework Answers
For a negotiable instrument to be valid ,it has to meet four requirements as follows :
1) It has to be in writing with a signature of the maker on it (present in this case)
2)It has to contain an unconditional promise or order to pay a certain sum of money and interest if applicable(present in this case)
3)It must contain a payable date (present in this case)
4)It has to contain payable to order or to the bearer(present in this case)
Hence ,this is a negotiable instrument.
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