In each of these independent situations please decide whether the following item

Question

In each of these independent situations please decide whether the following items on the fact of an OTHERWISE negotiable instrument renders the instrument non-negotiable? a) Note signed in the upper left hand corner b) Draft directing to pay out of next month's sales c) Note promising to pay in accordance with the mortgage terms d) Draft payable in 1000 euros e) Note payable upon your death f) Draft payable whenevr you present it to drawee g) Note promising to "Pay my Favorite Business Law Professor"

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Explanation / Answer

a. A note signed in the upper left hand corner does not render the note non-negotiable.

b. Negotiable instrument has a requirement that it has to be paid on Demand or a specific time which specifies the exact date of its payment. The draft directing to pay out of next month's sales renders the instrument non-negotiable.

c. Negotiable instrument has a requirement that it should contain an unconditional promise to pay to order or bearer. Thus, the note promising to pay in accordance with the mortgage terms renders the note non-negotiable.

d. Negotiable instrument has a requirement that it has to be specified in a certain sum of money and the amount should be fixed which must be a recognized currency. Thus, Draft payable in 1000 euros does not render the draft non-negotiable.

e. Negotiable instrument has a requirement that it has to be paid on Demand or a specific time which specifies the exact date of its payment. Thus, the note payable upon death renders the note non-negotiable.

f. Negotiable instrument has a requirement that it has to be paid on Demand or a specific time which specifies the exact date of its payment. Thus, the draft payable whenever presented to the drawee is payable on demand and is a negotiable instrument.

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