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Chapter 26 Last slide for posting

Chapter 26 Last slide for posting - — If doubt exists as...

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Terms and Omissions and Their Effect on Negotiability Dating of the Instrument — An instrument’s negotiability is not affected by the fact that it is antedated or postdated. If undated, the date of issuance is used; if unissued, the date of first possession is used. Incomplete Instruments — Occasionally, a party will sign a paper that is clearly intended to be an instrument, yet is incomplete because the party omitted a necessary element, such as the promise or order, the designation of the payee, the amount payable, or the time for payment. Such an instrument is not negotiable until it is completed. Ambiguous Instruments
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Unformatted text preview: — If doubt exists as to whether an instrument is a draft or a note, the holder may treat it as either one and present it for payment to the drawee or to the person signing it. • If handwritten or typewritten language is inconsistent with the printed words: The handwritten words control the typewritten and the printed words; the typewritten words control the printed words. • If the amount payable is set forth on the instrument’s face in both figures and words, and the amounts differ, the words control the figures. If the words are ambiguous, however, the figures control the payable amount....
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