Exam 24: Form and Content

The Revised Article 3 of the UCC provides that a check which meets all requirements of being a negotiable instrument, except that it is not payable to bearer or order, is nevertheless a negotiable instrument.

An assignee of contractual rights acquires only the same rights as the assignor.

A __________ is a specialized form of promise to pay money given by a maker in which the bank is the maker.

A draft involves three parties: a drawer, a drawee, and a payee.

A signed promissory note stating "I promise to pay to Bonnie Ramcell $600 on December 15, 2012" is not covered by Article 3 of the UCC.

Revised Article 3 eliminates the particular fund doctrine by providing that a promise or order is not made conditional because payment is to be made only out of a particular fund.

A promise or order is unconditional unless it states that:

To be negotiable, the instrument must satisfy all except which one of the following requirements?

Bill's car broke down on a dark, rainy night.Along came Andy in his service station's four-wheel drive truck with tools and supplies in the back.Bill didn't have any credit cards and only $3.25 cash, so Andy told him to write a check or an IOU.Neither Andy nor Bill had any paper, so Bill wrote on the cover of Andy's lunchbox: "If my car is fixed right by Andy Walcott, I will pay him $150.(Signed) Bill Boyd." Andy indorses the note and takes it to a commercial factor for negotiation.The factor refuses, saying it is non-negotiable because it:

Elmore purchases goods from Grady, and Elmore executes and delivers a negotiable note to Grady for $1,200, payable to Grady's order in 30 days.Two weeks later, Grady negotiates the note to McDaniel.Which of the following is true?

A check is a draft payable on demand.

An instrument payable at a definite time is time paper.

Carlos wrote a check with the numbers $4500 and the written amount as forty-five dollars.Explain how the ambiguity will be resolved.

Would an instrument containing the following language be negotiable? "Harold T.Stone, as President, hereby promises to pay $12,348 to the order of Joe Jones Furniture for office equipment for Redtyn Corporation, payable from its corporate assets.(Signed) Harold T.Stone as President, Redtyn Corporation."

An incomplete instrument is non-negotiable.However, when it is completed, it may become negotiable.

Jake signed and delivered a promissory note payable to Nancy.Nancy negotiated the note to Fred.Fred now has the same legal status as an assignee of a contract.

Negotiability invests commercial paper with a high degree of marketability and commercial utility by allowing it to be freely transferable and enforceable by a holder in due course.

Carol buys some items at the drugstore and writes a check to the store on her account at First Bank.Who is the drawee?

Which of the following would be an unconditional promise or order to pay?

Handwritten words supersede typewritten words contained in commercial paper.