Exam 28: Kinds of Instruments, Parties, and Negotiability

Omitting a date of execution affects an instrument's negotiability.

A promissory note that is payable "on the date of my marriage" is nonnegotiable even if the maker of the note marries.

Which of the following factors is irrelevant in determining whether an instrument is negotiable?

Instruments are transferable, written, signed promises or orders to pay a specified sum of money.

The party who writes or creates a promissory note is called the:

If an order or promise is not for money, the instrument is not negotiable.

The person to whom the order in a draft is addressed is known as the:

If an instrument is negotiable, it is governed by Article 2 of the UCC.

If a check is made payable to Paolo, and Paolo signs on the back of the check, Paolo is:

When a party who is not originally named in an instrument allows her name to be added to it for the benefit of another party in order to add strength to the collectability of the instrument, that party becomes a secondary obligor and assumes a liability role.

Once a draft is delivered to the payee, the drawee becomes liable.

If an instrument states no time for payment, the note is payable on demand.

The requirement of a sum certain in money is fulfilled even though the interest rate changes at maturity.

Negotiation of commercial paper results in lesser rights to transferees than those rights afforded assignees of contracts under contract law.

Once an instrument is negotiable, it can be:

When a drawee has signified in writing on a draft the willingness to make a specified payment, the drawee is called the acceptor.

A negotiable instrument may be partly printed and partly typewritten.

An instrument is order paper when by its terms it is payable to the order of any person described in it, or to a person or order.

The payee has no rights in an instrument until the drawer or the maker has delivered it to the payee.

An instrument is conditional if: