State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

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State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

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State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note for $2,000 payable in twenty monthly installments of $100 each that provides the following: “In case of death of maker, all payments not due at date of death are canceled.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note stating “This note is secured by a mortgage on personal property located at 351 Maple Street, Smithton, Illinois.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A certificate of deposit reciting “June 6, 2017, John Jones has deposited in the Citizens Bank of Emanon, Illinois, Two Thousand Dollars, to the credit of himself, payable upon the return of this instrument properly indorsed, with interest at the rate of 2 percent per annum from date of issue upon ninety days’ written notice. (Signed) Jill Crystal, President, Citizens Bank of Emanon.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

An instrument reciting “I.O.U., Mark Noble, $1,000.00.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note stating “In accordance with our contract of December 13, 2016, I promise to pay to the order of Sam Stone $100 on March 13, 2017.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A draft drawn by Brown on the Acme Publishing Company for $500, payable to the order of the Sixth National Bank of Erehwon, directing the bank to “Charge this draft to my royalty account.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note executed by Pierre Janvier, a resident of Chicago, for $2,000, payable in Swiss francs.

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

An undated note for $1,000 payable “six months after date.”

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note for $500 payable to the order of Ray Rodes six months after the death of Albert Olds.

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A note of $500 payable to the assigns of Levi Lee.

State whether the following provisions impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with either the word “Negotiable” or “Nonnegotiable” and explain why.

A check made payable “to Ketisha Johnson.”

Explanation & AnswerSolution by a verified expert

Explanation

Reliability of making the payment is on the person that makes the installments. The installments that are payable depends on the fact if the person is alive during the 20 months.
The lower amount would be paid at the time of the death of the installment's maker in terms of contingency. so, in this case, the instrument is nonnegotiable as negotiability depends upon the death of an individual.

Verified Answer

The situation mentioned would be nonnegotiable because the amount that must be paid in installments depends upon the person that makes the payments. Additionally, according to the Section Uniform commercial code 3-104(a), a lesser amount would be payable at the time of the death of the person who makes the payment.

Explanation

In a situation of making a transaction, keeping a record, or providing information, a presentation of cases that do not include converting the unconditional promises or orders to conditional is included. Even if the conversion leads to keeping the state of the instrument secured by the mortgage or securing title of reservation, the conversion cannot take place.  A presentation should be showcased so that the same scenario as this case comes into notice.

Verified Answer

The situation is negotiable as unconditional promises or orders cannot be made conditional because of any related situations, such as mortgage or title reservation.

Explanation

Any instrument will not be made for the objective of generating a payback only. An instrument not paid to order is not rendered payable by terms such as payments made upon return of the properly indorsed instrument. It will only be payable in words. Therefore, the situation mentioned will be a nonnegotiable situation.

Verified Answer

The situation mentioned is nonnegotiable. This is because certainties, which include the instruments that are not payable to order, will not be made. Return of instrument that is properly endorsed will be payable.

Explanation

If there are chances that the debt is admitted, its existence is implied from the fact by which the promise is made.
An I.O.U cannot be considered to be a promise but is considered as an acknowledgment of indebtedness, making the instrument nonnegotiable.

Verified Answer

The situation mentioned is nonnegotiable as any instrument that recites I.O.U does not count as a promise but is considered to be a case of obligation.

Explanation

An unconditional promise or an order cannot be made conditional by taking into consideration that the instrument states its consideration. This is the case in both the scenarios; whether the transaction has given rise to the instrument or the instrument matures in accordance with the transactions. This states that the instrument states a promise to pay Individual S in May. So, the instrument, as per the uniform commercial code, is negotiable.

Verified Answer

The situation mentioned is negotiable as an unconditional promise or order cannot be made conditional by stating that the instrument states its consideration. Whether the order is performed or promised depends upon the transaction.

Explanation

No promise or order can be made conditional. The reason for this is that the payment is very limited to the resort of a particular fund or source, which makes the situation negotiable.

Verified Answer

The situation mentioned is negotiable as any payment made is limited to the resort of a particular source.

Explanation

No promise or order can be made conditional. The reason for this is that the payment is very limited to the resort of a particular fund or source, which makes the situation negotiable.

Verified Answer

The situation mentioned is negotiable as any payment made is limited to the resort of a particular source.

Explanation

The instrument payable in Currency S would be payable in cash, even if the instrument had been executed in Country U by people that are not affiliated with Country S. Money test initiated by the government is one of its sanction, irrespective of the government being foreign or domestic.

Verified Answer

Payment of a certain sum of money is one of the demands of negotiability that makes the situation negotiable.
The currency used by the domestic government will be used by every other country.

Explanation

The situation mentioned is nonnegotiable as payment does not have to be paid at any definite time. As determination cannot be found out, the mentioned situation would be treated as an incomplete instrument.

Verified Answer

The definite time as to when the payment must be made cannot be determined. For this reason, it will be a nonnegotiable situation.

Explanation

The mentioned circumstance will be nonnegotiable as an instrument, which, by its terms and conditions, is otherwise payable only in the case of an act or case that is unclear in the time of its occurrence, is not payable at a particular time.

Verified Answer

The situation mentioned would be nonnegotiable as an instrument, which is otherwise payable by its terms only in the case of an act or case unknown at the time of incidence, shall not be payable at a definite time.

Explanation

The situation referred to in the question would be nonnegotiable as it is not provided in the updated Article 3. It does not state that consignments would be equal to any order.

Verified Answer

The situation mentioned would be nonnegotiable as the revised Article 3 does not provide that consigns would be equivalent to any order.

Explanation

It is also a negotiable tool, given the fact that the check struggles to provide the negotiability criteria. Therefore, it would be negotiable.

Verified Answer

The situation mentioned would be negotiable because the check struggles to include the terms of negotiability.

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