Asked by bentley romanski on Apr 25, 2024
Verified
To be negotiable, if an instrument is not payable on demand, it must be payable at a definite time.
Negotiable
Refers to financial instruments or contracts that can be easily transferred or sold to another party.
Payable On Demand
A financial obligation that must be paid by the debtor when the creditor requests it.
Definite Time
A specific point or period in time that is clearly defined or determined.
- Illustrate the critical role of determined and measurable amounts in the framework of negotiable instruments.
- Recognize the importance of an unconditional promise or order to pay in determining negotiability.
Verified Answer
AS
Anmol Samra6 days ago
Final Answer :
True
Explanation :
For an instrument to be negotiable, if it is not payable on demand, it must have a specific due date or be payable at a definite time to provide certainty to the payee about when payment is expected.
Learning Objectives
- Illustrate the critical role of determined and measurable amounts in the framework of negotiable instruments.
- Recognize the importance of an unconditional promise or order to pay in determining negotiability.