Asked by Joseph Hernandez on Apr 25, 2024
Verified
Motor Sales Inc. signs an instrument that promises to pay National Parts Company a certain price, with interest, for a shipment of auto parts. It is necessary to know when the instrument is due in order to
A) determine the value of the instrument.
B) calculate when a statute of limitations may apply.
C) know when the interest will accrue.
D) all of the choices.
Statute of Limitations
A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.
Interest Accrue
The process by which interest is added to the principal sum of a loan or deposit, typically over time.
Instrument Due
This term refers to the date on which a financial instrument, such as a check or note, is payable.
- Comprehend the legal significance of a negotiable instrument’s terms concerning its enforceability and maturity.
Verified Answer
KD
kamal dhaliwal5 days ago
Final Answer :
D
Explanation :
Knowing when an instrument is due helps in determining its value (as the value can change over time with interest accrual), calculating when a statute of limitations may apply (as legal rights to enforce the instrument can expire), and understanding when interest will accrue (which affects the total amount payable).
Learning Objectives
- Comprehend the legal significance of a negotiable instrument’s terms concerning its enforceability and maturity.