Question

Decide whether the rule stated is a requirement for negotiability. Must be payable on demand or at a definite time Required Drag answer here Not Required Must state the rate of interest Drag answer here Must be a writing Drag answer here Must be payable in money Drag answer here Must match words and figures Drag answer here Must be signed by Maker or Drawer Drag answer here

Answer 1

Answer.

1. Must be payable on demand or at a definite time- Required
Instrument can be payable on sight , presentation or issue is known as demand instrument.
Instrument with definite time can be extended upto definite period.
2. Must state the rate of interest-Required
Any sum payable including the interest must be stated in the instrument.
3. Must be in writing- Required
Anything that is readily transferrable and appears to be permanent.
4. Must be payable in money- Required
Any currency which is recognized by government as money. There must be no other option.
5. Must match words and figures - Not required
It is not compulsory to state it
6. Must be signed by maker or drawer- Required
Signature can be anywhere on the instrument in words, mark or stamp and the person signing person must have the capacity to authorize it