Henry Hughes, who operates a department store, executed the following instrument:

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Henry Hughes, who operates a department store, executed the following instrument:

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Henry Hughes, who operates a department store, executed the following instrument:

Explanation & AnswerSolution by a verified expert

Explanation

A written promise to pay a certain amount of money on a certain day to be made for consideration thereafter is a legal promissory note.
The law takes the general contractual interpretation that terminology is meant to be simply a recital on the sources of the instrument and a guide for details to the contract, but is not intended to make payment conditional under the terms of any other arrangement.
For this reason, the instrument is negotiable.

Verified Answer

The instrument is negotiable. This is because of the simple fact that the consideration with which a promissory note is issued is recited in it. Even though it may seem to have been issued for or in consideration of an executory contract or a commitment on the part of the payee, it does not prejudice the negotiability of the note until it arises in the recital that the promise to pay is eligible, thereby rendering it conditional or ambiguous.

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