Author Question: Explain the requirements of negotiability.[br][br][b][color=#165FFA]Question ... (Read 70 times)

joesmith1212 · **on:** Jun 24, 2018

Explain the requirements of negotiability.

Question 2

The rights and duties of warehousers are regulated by the UCC.
Indicate whether the statement is true or false

jxjsniuniu · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

An instrument must comply with seven requirements in order to be negotiable. If it lacks any of these requirements, the document is not negotiable. The seven requirements are:
1. The instrument must be in writing and signed by the party executing it.

2. The instrument must contain either an order to pay or a promise to pay.

3. The order or the promise must be unconditional.

4. The instrument must provide for the payment of a fixed amount of money.

5. The instrument must be payable either on demand or at a fixed or definite time.

6. The instrument must be payable to the order of a payee or to bearer.

7. The payee and the drawee must be designated with reasonable certainty.

Answer to Question 2

TRUE