Exam 24: Form and Content

Expain whether each of the following would be negotiable or not negotiable. a.A check with the amount payable omitted. b.A draft for 3,000 bushels of corn. c.A check written in pencil on a paper towel. d.A note stating that it is secured by a mortgage on a specified parcel of land. e.A note stating "IOU fifty dollars."

Carlos wrote a check with the numbers $4500 and the written amount as forty-five dollars.Explain how the ambiguity will be resolved.

To have the full benefit of negotiability,negotiable instruments must:

A promissory note is an instrument that involves three parties in three capacities.

Who are the parties to checks and notes?

X signs a negotiable instrument ordering Y to pay Z the sum of $500.Y is the:

Elmore purchases goods from Grady,and Elmore executes and delivers a negotiable note to Grady for $1,200,payable to Grady's order in 30 days.Two weeks later,Grady negotiates the note to McDaniel.Which of the following is true?

Which of the following has been held to destroy the negotiability of an instrument and to render its transfer a contractual assignment?

The Revised Article 3 of the UCC provides that a check which meets all requirements of being a negotiable instrument,except that it is not payable to bearer or order,is nevertheless a negotiable instrument.

A maker must sign in the lower right-hand corner of the instrument.

Negotiability invests negotiable instruments with a high degree of marketability and commercial utility by allowing them to be freely transferable and enforceable by a person with the rights of a holder in due course against a person obligated on the instrument.

References to other agreements in negotiable instruments:

Jones signed a 90-day note promising to pay $1,000 plus interest.The note states that interest is to be based on a variable,published rate external to the note.The sum the borrower must repay is uncertain,so the note is not negotiable under Revised Article 3.

Postdating an instrument will destroy its negotiability.

To be negotiable,the instrument must satisfy all except which one of the following requirements?

A draft involves three parties: a drawer,a drawee,and a payee.

A reference in a negotiable instrument to the existence of a separate agreement to which it is subject destroys the negotiability of the instrument.

The drawee is the individual who signs a check and promises to pay.

A signed promissory note stating "I promise to pay to Bonnie Ramcell $600 on December 15,2014" is not covered by Article 3 of the UCC.

To be negotiable,an instrument must be in writing.