LAW 610 Chapter Notes - Chapter 28: Negotiable Instrument, Promissory Note, Commercial Paper
Document Summary
Chapter 28 kinds of instruments, parties, and negotiability. Explain the importance and function of negotiable instruments. Describe the concept of negotiability and distinguish it from assignability. Commercial paper written, transferable, signed promise or order to pay a specified sum of money; a negotiable instrument. Substitute for money for convenience as a means of offering credit. Negotiable commercial paper facilitate funds transfer and payment and can create additional rights in a special person status known as a holder in due course. One of the goals of using special paper is to allow parties to achieve that special status and its protections and rights. Negotiable instruments drafts, promissory notes, checks, and certificates of deposit that, in proper form, give special rights as negotiable commercial paper . Ucc defines: an unconditional promise or order to pay a fixed amount of money, if it. Is payable on demand or at a definite time; and.
