Business law Chapt 31 HW - by a mortgage and still be...

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Ibrahim Tosson Business Law HW- Chapter 31 Problems Problem 1 The fallowing instrument is a draft because it has the characteristics of a draft. For example, a draft is an order by one person to another person to pay money to the order of a third person. To make it a check, it will have to be drawn at a bank Problem 2 A promissory note is considered a negotiable instrument, which means that it has more advantages than a contract. A promissory note can also be secured to an asset, so it is better to have a promissory note than to just have a contract. Problem 4 It is not negotiable because the statement does not contain the words “to the order of” or “to the bearer” Problem 5 This note is negotiable because a note can contain the following statement “this note is secured
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Unformatted text preview: by a mortgage and still be negotiable. The mortgage does not affect rights and duties of the parties to the note, and it is not necessary to examine the mortgage document to determine the rights of the parties to the note. Problem 6 A check is considered negotiable if it is signed by the maker, unconditional, and is payable on demand. I believe that the statement on the memo section did not prevent the check from being payable on demand. Problem 9 I believe the bank should be held liable because they paid the wrong amount. The law states that words control figures except that if words are ambiguous figures control. The bank should have paid the written amount, and not the ambiguous figure....
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Business law Chapt 31 HW - by a mortgage and still be...

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