Unformatted text preview: erms of another agreement. terms The Particular Fund Doctrine – an order or promise to pay only out of a particular fund no longer is conditional and does not destroy negotiability. negotiability. Money – Legal tender authorized or adopted by a sovereign government as part of its currency. currency. Formal Requirements of Negotiable Instruments Negotiable
s s s Fixed Amount – the holder must be assured of a determinable minimum principal payment although provisions in the instrument may increase the amount of recovery under certain circumstances. circumstances. No Other Promise or Order – a promise or order to do an act in addition to the payment of money destroys negotiability. of Payable on Demand or at a Definite Time – an instrument is demand paper if it must be paid upon request; an instrument is time paper if it is payable at a definite time. paper Formal Requirements of Negotiable Instruments Negotiable
s Payable to Order or to Bearer – a negotiable instrument must contain words indicating that the maker or drawer intends that it pass into the...
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- Spring '09
- Law, Cheque, Promissory note, Negotiable instrument, Negotiable Instruments Types