ch24

West's Business Law with Online Research Guide, 9th Edition

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NEGOTIABLE INSTRUMENTS A negotiable instrument is a (1) written instrument, (2) signed by the maker or drawer of the instrument, (3) that contains an unconditional promise or order to pay (4) a fixed amount of money (with or without interest in a specified amount or at a specified rate) (5) on demand or at an exact future time (6) to a specific person , or to order , or to its bearer . Ch. 24: The Function and Creation of Negotiable Instruments - No. 1 West’s Business Law (9th ed.)
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Draft: An unconditional order to pay ( e.g. , a check) by which the party creating the draft (the drawer ) orders another party (the drawee ), typically a bank, to pay money to a third party (the payee ). Time Draft: A draft payable at a time certain. Sight Draft: A draft payable on presentment. Trade Acceptance: A draft that is drawn by a seller of goods ordering the buyer to pay a specified sum of money to the seller, usually at a specified future time. The buyer accepts the draft by signing and returning it to the seller. Promissory Note: A written promise made by one person (the maker ) to pay a fixed sum of money to another person (the payee ) on demand or at a specified future time. Certificate of Deposit: A note by which a bank or similar financial institution acknowledges the receipt of money from a party and promises to repay the money, plus interest, to the party or the party’s designee, on a certain date. Ch. 24: The Function and Creation of Negotiable Instruments - No. 2
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ch24 - NEGOTIABLE INSTRUMENTS A negotiable instrument is...

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