Asked by Deneatra Caesar on May 10, 2024
Verified
An ordinary IOU satisfies the "unconditional promise or order to pay" requirement for a negotiable instrument.
Unconditional Promise
A firm commitment or guarantee without any stipulations or requirements for its fulfillment.
- Understand the requirements for an instrument to be considered negotiable under the UCC.
Verified Answer
AM
Aadit MeenegeMay 13, 2024
Final Answer :
False
Explanation :
The promise or order to pay must be specific and not implied in order for an instrument to be negotiable.The language must be affirmative in nature.For example,simply acknowledging a debt does not create language for payment; therefore,a common IOU is not a promise or order to pay and thus cannot be a negotiable instrument.
Learning Objectives
- Understand the requirements for an instrument to be considered negotiable under the UCC.