November 11, 2013 Grantham University BA 265 Business Law II Week 6 Assignment Negotiable Instruments On the back of an envelope, Phoebe writes, “I promise to pay Quint or bearer $600 on demand. [Signed] Phoebe.” The type of instrument that is used in this scenario is a promissory note. When a promissory note is present, this is a written promise which involves two parties (Miller & Hollowell, 2011). The two parties that are present in a promissory note is the maker (payer) and the
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instrument called promissory note. Promissory note is a document passed from one person to another that is a written and signed unconditional promise to pay a specified sum of money on demand or at a definite time to order (to specific person or entity) or bearer. Promissory notes generally involve just two parties: the person signing the note who is promising to pay money (the “maker” of the note); and the person to whom the note specifies the money is to be paid (the “payee” of the note) (Promissory Note)
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or holder is the person to whom payment is promised. The payee can be either a specifically named individual or merely the bearer of the instrument who has it in his or her physical possession when he or she seeks to be paid according to its terms. A note payable to "bearer" can be paid to the person who presents it for remuneration. Such an instrument is said to be bearer paper. A promissory note that is payable on demand can be redeemed by the payee at any time, whereas a time note has a date
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determinable future time, a sum certain in money or to bearer. It is commonly referred to as a note. Payee – the party to whom the promise is made or the instrument is payable. Bill of exchange – an unconditional order in writing addressed by one person to another, signed by the person giving it, and requiring the person to whom it is addressed to pay upon demand or at a fixed or determinable future time a sum certain in money to order or to bearer. If drawn on a bank and payable on demand,
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writes, “I promise to pay Quint or bearer $600 on demand. [Signed] Phoebe.” This instrument is a promissory note and a bearer note, and it is negotiable. A promissory note is a written promise made by one person (the maker) to pay a fixed sum of money to another person (the payee) on demand or at a specified future time. The maker of this note is Phoebe. The payee is Quint or bearer. A note that is payable to a specific payee or bearer is a bearer note. A bearer is anyone holding something such
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TYPES OF NEGOTIATION Everest University Online Professor Zapalski There are many different types of negotiations. I will be discussing what type of negotiation instrument is demonstrated with the following example. This involves Bob’s Auto Emporium. You are interested in buying a new car and Bob let’s you use one of his cars off his lot for a week. Once your week is up, you return the car to Bob and he gives you a document stating the following: May 1, 2015, I promise to pay to the order of
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A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document. More specifically, it is a document contemplated by or consisting of a contract, which promises the payment of money without condition, which may be paid either on demand or at a future date. The term can have different meanings, depending on what law is being applied and what country it is used in and what context it is used in. Examples
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(3) that contains an unconditional promise or order to pay (4) an exact sum of money (with or without interest in a specified amount or at a specified rate) (5) on demand or at an exact future time (6) to a specific person, or to order, or to its bearer. 2 NEGOTIABILITY: SIGNATURES n For an instrument to be negotiable, it must be signed by the maker/drawer. n A signature may be any symbol made by the maker or drawer with the present intention to be a signature. 3 NEGOTIABILITY: UNCONDITIONALITY
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"negotiable instrument" means a document transferable from one person to another. However the Act has not defined the term. It merely says that "A .negotiable instrument" means a promissory note, bill of exchange or cheque payab1e either to order or to bearer. [Section 13(1)] A negotiable instrument may be defined as "an instrument, the. property in which is acquired by anyone who takes it bona fide, and for value, notwithstan~ing any defect of title in the person from whom he took it, from which it
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HOLDER IN DUE COURSE The phrase ‘Holder in Due Course’ shortens considerable the heavy English equivalent ‘bona fide holder for value without notice’ and both the Indian and English Acts have adopted this phrase. Sec. 9 of the Negotiable Instruments Act stresses on a more stringent condition on a Holder in Due Course as compared to one under Section 29 (1) (b) of the Bills of Exchange Act, 1882. HE must not only have acquired the bill, note or cheque for valid consideration but should have acquired
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