Asked by marta kebede on May 28, 2024
Verified
Postdating an instrument will not destroy its negotiability.
Postdating
The act of dating a document, check, contract, or other legal instruments with a date that is later than the actual date.
Negotiability
The characteristic of a financial instrument that allows it to be transferred or assigned from one party to another.
- Understand the concept and requirements for negotiability of instruments under the Uniform Commercial Code (UCC).
Verified Answer
AF
Alima FaginMay 28, 2024
Final Answer :
True
Explanation :
Postdating an instrument refers to the practice of writing a future date on the instrument, and it does not affect its negotiability. The negotiability of an instrument is determined by its adherence to certain criteria outlined in the Uniform Commercial Code (UCC), such as being an unconditional promise or order to pay a fixed amount of money. The date written on the instrument does not alter these fundamental characteristics.
Learning Objectives
- Understand the concept and requirements for negotiability of instruments under the Uniform Commercial Code (UCC).
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