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Negotiability Requirements I

Gain an overview of the basic requirements for negotiability and learn about the requirement that the instrument be an unconditional promise or order to pay a fixed sum of money.

Transcript

Generally speaking, a negotiable instrument is an easily transferable, written, signed promise or order to pay money that has distinct monetary value. However, not every document meeting this definition qualifies as a negotiable instrument under Articles 3 and 4. Indeed, to qualify as a negotiable instrument, the instrument must meet certain exacting negotiability requirements, which we’ll discuss in this and the next several lessons.

I. Negotiability Requirements

Article 3 outlines four...