Negotiability Requirements II
Learn about the requirement that, to be negotiable, an instrument must be payable to bearer or to order and be payable on demand or at a definite time.
Transcript
As you may recall from another lesson, for an instrument to be negotiable under Article 3, it must contain an unconditional promise or order to pay a fixed sum of money, be payable to bearer or to order, be payable on demand or at a definite time, and not state any promise or undertaking other than the promise or undertaking to pay money.
We’ve already discussed the first requirement; now, let’s look at the second and third requirements.
I. Payable to Bearer or to Order
For an instrument to be...
