Business Law Midterm
Business Law II Exam I Review
____ 1. As part of a loan to pay for improvements to her restaurant, Courtney executes a negotiable instrument in favor of Tim. They are the only parties to the instrument. A negotiable instrument that has only two parties is The promissory note is the simplest form of commercial paper; it is simply a promise to pay money. A promissory note is a two-party instrument in which one person(known as the maker) makes an unconditional promise in writing to pay another person (the payee) a person specified by that person, or the bearer of instrument, a fixed amount of money, with or without interest, either on demand or at a specified, future time ____ 2. John's oral promise to pay $300 to Paul is not a negotiable instrument because For an instrument to be negotiable, it must: 1. Be in writing 2. Be signed by the issuer (the maker in the case of a person undertaking to pay ot the drawer in the case of a person giving an order or instrument to pay) 3. Contain an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order. 4. Be payable to order or to bearer 5. Be payable on demand or at a definite time 6. Not state any other undertaking or instruction by the person promising or ordering to do any act in addition to the payment of money( however, it may contain (a) an undertaking or promise relative to collateral to secure payment , (b) an authorization for confession of judgment, or (c) a waiver of benefit of any law intended for the advantage or protection of an obligator) ____ 3. Ferdinand owes $8,000 in unpaid taxes. Using the back of an old shirt, he executes an instrument for $8,000 that otherwise meets the requirements for negotiability. This instrument is likely To be negotiable, an instrument must be in writing. An instrument that is handwritten, typed, or printed
____ 1. As part of a loan to pay for improvements to her restaurant, Courtney executes a negotiable instrument in favor of Tim. They are the only parties to the instrument. A negotiable instrument that has only two parties is The promissory note is the simplest form of commercial paper; it is simply a promise to pay money. A promissory note is a two-party instrument in which one person(known as the maker) makes an unconditional promise in writing to pay another person (the payee) a person specified by that person, or the bearer of instrument, a fixed amount of money, with or without interest, either on demand or at a specified, future time ____ 2. John's oral promise to pay $300 to Paul is not a negotiable instrument because For an instrument to be negotiable, it must: 1. Be in writing 2. Be signed by the issuer (the maker in the case of a person undertaking to pay ot the drawer in the case of a person giving an order or instrument to pay) 3. Contain an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order. 4. Be payable to order or to bearer 5. Be payable on demand or at a definite time 6. Not state any other undertaking or instruction by the person promising or ordering to do any act in addition to the payment of money( however, it may contain (a) an undertaking or promise relative to collateral to secure payment , (b) an authorization for confession of judgment, or (c) a waiver of benefit of any law intended for the advantage or protection of an obligator) ____ 3. Ferdinand owes $8,000 in unpaid taxes. Using the back of an old shirt, he executes an instrument for $8,000 that otherwise meets the requirements for negotiability. This instrument is likely To be negotiable, an instrument must be in writing. An instrument that is handwritten, typed, or printed