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

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

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

A note signed by Henry Brown in the trade name of the Quality Store.

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

A note for $850, payable to the order of TV Products Company, “If, but only if, the television set for which this note is given proves entirely satisfactory to me.”

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

A note executed by Adams, Burton, and Cady Company, a partnership, for $1,000, payable to the order of Davis, payable only out of the assets of the partnership.

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

A note promising to pay $500 to the order of Leigh and to deliver ten tons of coal to Leigh.

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

A note for $10,000 executed by Eaton payable to the order of the First National Bank of Emanon in which Eaton promises to give additional collateral if the bank deems itself insecure and demands additional security.

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

A note reading, “I promise to pay to the order of Richard Roe $2,000 on January 31, 2017, but it is agreed that if the crop of Blackacre falls below ten bushels per acre for the 2016 season, this note shall be extended indefinitely.”

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

A note payable to the order of Ray Rogers fifty years from date but providing that payment shall be accelerated by the death of Silas Hughes to a point of time four months after his death.

State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with the word Negotiable or Nonnegotiable and explain why.
h. A note for $4,000 calling for payments of installments of $250 each and stating “In the event any installment hereof is not paid when due this note shall immediately become due at the holder’s option.”

State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with the word Negotiable or Nonnegotiable and explain why.
i. An instrument dated September 17, 2017, in the handwriting of John Henry Brown, which reads in full: “Sixty days after date, I, John Henry Brown, promise to pay to the order of William Jones $500.”

State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with the word Negotiable or Nonnegotiable and explain why.
j. A note reciting “I promise to pay Ray Reed $100 on December 24, 2017.”

Explanation & AnswerSolution by a verified expert

Explanation

A signature can be made in any form, be it a name, trade, or an assumed name with an intention to verify the writing. Additionally, the note is signed by the Individual H.
A signature adopted for any reason can be in the form of a name or trade. So, it would be negotiable.

Verified Answer

The situation mentioned would be negotiable as the maker or the drawer, that is, Individual H should mandatorily sign a negotiable instrument, and both a name and trade are forms of a signature.

Explanation

A person who makes the note can put up a condition or a promise to pay by the means of performance and is not entitled to pay or either fulfill any promise. Hence in this scenario, the provision is nonnegotiable.
An unconditional promise is included in a negotiable instrument, which also provides any writing to be a negotiable instrument by paying a fixed amount of money.

Verified Answer

The situation mentioned would be nonnegotiable as the person who will make the payment does not promise to pay.

Explanation

A negotiable instrument is a paper that guarantees the payment, either on request or at a specified time, of a certain sum of money. The payer of this instrument is typically identified in the paper.
Article 3 rejects particular fund doctrine because a note executed by the company partners can be payable out of the assets of the partnership.

Verified Answer

The situation mentioned would be negotiable as Article 3 disregards fund doctrine, which is specific in nature.

Explanation

Section 3-104 states that whether the written statement includes an unconditional commitment or an order to pay a fixed sum of money without some other undertaking, some writing will be included in the negotiable instrument.
Here, the note is given by a promise to pay $ 500. However, the instrument states the condition that 10 tons of Resource C must be delivered to Place L.

Verified Answer

The situation mentioned would be nonnegotiable as any negotiable instrument in writing must include an unconditional promise or order, so that a fixed amount of money could be paid.
In this case, the condition related to delivery of Resource C is given.

Explanation

Section 3, sub-section A states that instrument’s negotiability cannot be affected by any promise or any power for maintaining or protecting collateral. It doesn’t render the paper to become a nonnegotiable instrument under uniform commercial code, which generally leads to collection of debt.
In this scenario, Company E promises to pay Bank F, which leads the provision to become negotiable.

Verified Answer

The situation mentioned would be negotiable as Section 3-104 sub-section A states that if there is an instrument, the power of the negotiability cannot be affected by a promise or any power to protect collateral or give extra collateral.

Explanation

An instrument shall be payable at a prescribed period if, according to its terms and conditions, it is payable at a specified time, which is subject to extension at the option of the holder, the producer, or acceptor, or after a defined act or case.
The extension here is for an unspecified period; the pledge is illusory, and the payment is not certain.

Verified Answer

The situation mentioned would be nonnegotiable as Section 3-108 and sub-section B state that an instrument shall be payable at a specified time if, according to its terms and conditions, it is paid at a specified time. This specified time is liable to extend according to the choice of the holder, the maker, or the acceptor, or after a specified act or case.

Explanation

An instrument shall be payable at a prescribed period if, according to its terms and conditions, it is payable at a specified time, which is subject to extension at the option of the holder, the producer, or acceptor, or after a defined act or case.
The extension here is for an unspecified period; the pledge is illusory, and the payment is not certain.

Verified Answer

The situation mentioned would be nonnegotiable as Section 3-108 and sub-section B state that an instrument shall be payable at a specified time if, according to its terms and conditions, it is paid at a specified time. This specified time is liable to extend according to the choice of the holder, the maker, or the acceptor, or after a specified act or case.

Explanation

Any instrument cannot be affected by other clauses present, irrespective of the acceleration with the holder or maker and event occurrences. Also, irrespective of the nature of the events as conditional or unrestricted, they will not be taken into consideration.
As there is a probability of getting a post-obituary notice, the condition described is negotiable. Based on the pace, an instrument must be paid by Company RR at a given time after the death of Individual S.

Verified Answer

The situation mentioned is negotiable as there is a possibility of a post-obituary note. An instrument must be paid at a definite time depending upon the acceleration of the process.

Explanation

Instrument's negotiability cannot be affected by the acceleration and is payable at a definite time. Nonpayment of events could be conditional.
If the amount is not paid in installments, then it will get due to the holder. In this situation, it is stated that the instrument is negotiable in which all installments are paid, irrespective of the person paying for it. This implies that negotiability is not affected by any kind of situation.

Verified Answer

The situation mentioned would be negotiable as negotiable instrument cannot be affected by the acceleration.

Explanation

Instrument's negotiability cannot be affected by the acceleration and is payable at a definite time. Nonpayment of events could be conditional.
If the amount is not paid in installments, then it will get due to the holder. In this situation, it is stated that the instrument is negotiable in which all installments are paid, irrespective of the person paying for it. This implies that negotiability is not affected by any kind of situation.

Verified Answer

The situation mentioned would be negotiable as negotiable instrument cannot be affected by the acceleration.

Explanation

A person who makes the signature may be present in the body of the instrument, and it is not compulsory to get a note signed at the end of the process.
In this scenario, Individual J promised to pay $500 to Individual W. However, Individual J has not signed the instrument. Despite this, the instrument is negotiable as per the uniform commercial code.

Verified Answer

The situation mentioned would be negotiable as it is not mandatory to get a note signed at the end.

Explanation

Section 3-104 sub-section A states that writing should be payable to the order, the bearer, or to their equivalent. In this situation, the negotiation is lacking this payment.
In this case the instrument is given by reciting the instruction to pay Individual R an amount of $100 in December.

Verified Answer

The situation mentioned would be nonnegotiable as Section 3-104 sub-section A states that writing should be payable to the order, the bearer, or to their equivalent.

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