Asked by Llaneth Valenzuela on Jul 19, 2024
Verified
Henry purchased an automobile from Iso Motors, and as a part of the payment, gave Iso Motors a promissory note in the amount of $4,000. If the promissory note is negotiated to Friendly Finance Company, the company (as a holder), may enforce payment.
Promissory Note
A written promise to pay a specified sum of money to a designated person or the bearer at a specified date or on demand.
Negotiated
Negotiated refers to having discussed and agreed upon terms or conditions through a process of bargaining or dialogue between parties.
Holder
The person in possession of a negotiable instrument.
- Identify the rights of holders and negotiating parties of promissory notes in transactions.
Verified Answer
KL
Khuyên LavenderJul 23, 2024
Final Answer :
True
Explanation :
As a holder of the promissory note, Friendly Finance Company has the right to enforce payment from the maker of the note, in this case, Henry, according to the terms of the note.
Learning Objectives
- Identify the rights of holders and negotiating parties of promissory notes in transactions.