On March 10, Tolliver Tolles, also known as Thomas Towle, delivered to Alonzo Craig and Abigail Craig the following instrument, written by him in pencil:
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On March 10, Tolliver Tolles, also known as Thomas Towle, delivered to Alonzo Craig and Abigail Craig the following instrument, written by him in pencil: For value received, I, Thomas Towle, promise to pay to the order of Alonzo Craig or Abigail Craig One Thousand Seventy-Five ($1,000.75) Dollars six months after my mother, Alma Tolles, dies with interest at the rate of 9 percent from date to maturity and after maturity at the rate of 9.75 percent. I hereby waive the benefit of all laws exempting real or personal property from levy or sale. |
Explanation
The instrument will be nonnegotiable because of the following reasons:
The fact that an assumed identity is also used by Individual T is immaterial. Section 3-401 provides that any name, even any trade or assumed name, should be used to render a signature.
Negotiability is not affected by the fact that the note is written in pencil. The uniform commercial code prescribes that the instrument must be written, but it does not specify that pen and ink must be chosen to write the document.
Without impairing negotiability, the manufacturer can sign a note at the beginning rather than at the end.
An undated instrument payable after a certain number of days, months or years after the individual 's death is not payable at a specified time, as it is difficult to ascertain the time of payment from its face.
The otherwise negotiable character of the instrument is ruined by this clause because the time of payment cannot be calculated from the face of the instrument.
The clause that waives the value of all statutes that waive the levy or selling of real or personal property is contrary to general policy and, thereby, inoperative. The clause is superfluous and does not add to negotiability or subtract from it as per Chapter 3-104.
Verified Answer
The instrument will be nonnegotiable as the facts that are used by Individual T in the case are as follows:
Use of an assumed name, which is immaterial
Written by pencil
Not paid at specified time
Calculation is difficult
Clause is superfluous
