Asked by Julia Kochman on Jun 10, 2024
Verified
An "I.O.U." is a negotiable instrument.
I.O.U.
An informal document acknowledging a debt owed.
Negotiable Instrument
A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee’s name written on the document.
- Comprehend the difference between negotiable instruments and non-negotiable documents.
Verified Answer
CG
Crizelle Ganayo Luy-odJun 12, 2024
Final Answer :
False
Explanation :
An "I.O.U." is an acknowledgment of debt, but it does not meet all the requirements to be considered a negotiable instrument under the law, such as the promise to pay being unconditional and specifying a fixed amount of money.
Learning Objectives
- Comprehend the difference between negotiable instruments and non-negotiable documents.