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I need help creating a thesis and an outline on Recognize the elements of a negotiable instrument, as well as the elements of rules affecting transferability and liability. Prepare this assignment acc
I need help creating a thesis and an outline on Recognize the elements of a negotiable instrument, as well as the elements of rules affecting transferability and liability. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. Elements of a negotiable instrument Affiliation: Elements of a negotiable instrument A negotiable instrument is adocument which establishes an obligation on one party to pay another a certain amount either conditionally or unconditionally. “It is any written promise or order to pay a sum of money” (Miller 2011, p.294).
The Uniform Commercial Code establishes a number of types of negotiable instruments. drafts, checks, certificate of deposit and notes. There is specifically one feature evident of promissory notes and that is the use of the phrase, ‘I promise to pay’. From the foregoing it will be ascertained that the instrument in question is a promissory note. The other types of instruments are constructed in form of an order.
Does the instrument in question meet the requirements of negotiability under the Uniform Commercial Code? This question can best be dealt with by comparing the elements of a negotiable instrument under the Uniform Commercial Code with the instrument in question. These elements are:
It should be in writing.
Writing can be on anything that is permanent and has portability (3-103 UCC). Since the above instrument is written, there appears to be no contention that the instrument in question meets the first requirement.
It must be signed by the maker.
This is intended to authenticate it (3-401 UCC). Bob by handing over a pen to the maker in this question implicates that he wants the maker to put his signature and make him be bound by the document. The maker here will be bound by making any mark on the instrument which purports to be a signature.
Should be unconditional promise or order
“The promise must be an affirmatively written undertaking more than a mere acknowledgement of a debt” (Howard 1964). Apart from acknowledging that he has a debt amounting to $20 000 plus interests the maker further makes an affirmative undertaking to discharge the debt. This can be ascertained by the use of the phrase ‘I promise to pay’.
Payment cannot be conditional and the promise or order cannot be subject to rights or obligations stated in another source save for any exception provided by the Uniform Commercial Code. The document in question does not imply any condition. Take for instance if the document was worded in the following manner.
