Exam 25: Negotiable Instruments

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is

Rico agrees to buy a bicycle from Salvatore for $250. Salvatore agrees to deliver the bike on September 1. Rico writes a draft for $250 payable to Salvatore on September 1. This is

On a cashier's check, the bank is the drawer.

A sight draft may be payable on acceptance.​

On a trade acceptance, the drawer is also the drawee.

For an instrument to be negotiable, it must not contain an express promise or order to pay.

With respect to negotiability, the location of a signature on a document is important.

To be negotiable, an instrument must have portability.

To borrow funds to finance his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be

Camille signs an instrument in favor of Donald that states it is "subject to a certain agreement between Camille and Enzo." This instrument is

Gwen deposits $5,000 with Home State Bank on July 1, 2016. Home State Bank promises to repay Gwen the $5,000 plus 3 percent annual interest on July 1, 2021. Home State Bank issued to Gwen

On a sheet of paper, Elle writes, without her signature, "I acknowledge that I owe Frank $600, payable out of the proceeds of the sale of my car, a 1995 Honda Civic, which I promise to advertise 'For Sale' next week. Payment is to be made on or before six months from today." What type of instrument is this? Is it negotiable? If not, why not?

A symbol can serve as a valid signature.

On May 1, Mia signs a check that is payable to the order of Nicole and that is dated July 1. This check is

Rubber stamp signatures can be legally binding signatures.

The transfer of a negotiable instrument from one person to another is governed by Article 2 of the Uniform Commercial Code.

A promissory note must name a specific payee to be negotiable.​

With respect to negotiability, a mere reference to another writing or record makes a promise conditional.

To be negotiable, an order to pay must be addressed to only one person.

A personal check cannot be a negotiable instrument.