eugeneosbornAssignment 6

eugeneosbornAssignment 6 - Assignment 6 LAW2221-Scroggins...

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Assignment 6 1 LAW2221—Scroggins Clarkson Text Chapter 24: 1. Discuss the concept of negotiability. Functions as cash or as an extension of credit 2. List and describe the types of negotiable instruments involving an order to pay. Draft: order by one person to another person Check: draft drawn on a bank and payable on demand 3. List and describe the types of negotiable instruments involving a promise to pay. Promissory note: promise by one party to pay money to another party Certificate of deposit: a note made by a bank acknowledging a deposit of funds made payable to a holder of a note 4. List and describe the formal requirements than an instrument must meet to be negotiable. 1) Be in writing 2) Be signed by maker or the drawer 3) Be an unconditional promise or order to pay 4) State a fixed amount of money 5) Be payable on demand or at a definite time 6) Be payable to order or to bearer, unless it is a check 5. What is the effect on negotiability if an instrument is a) undated, antedated or
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eugeneosbornAssignment 6 - Assignment 6 LAW2221-Scroggins...

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