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The six requirements which a promissory note must meetIn order for it to be negotiable. The requirements, which we discussed at our meeting last Thursday, are as follows: V The note must be in writing. V The note must be signed by the maker. V The note must contain an unconditional order or promise to pay what is called a 'sum certain' in money. What this actually means is the amount must be Certain, or capable of being made certain by calculation. \.., The note must say that it is either 'payable on demand' (that is, whenever the person for whom the Instrument was made wants to be paid) or at a Definite time. Put simply, this means that a date or a fixed time after a date must be stated (e.g. '90 days after the date of this instrument'). V The note must say that it is payable to order or to bearer. In other words, the words 'pay to the order of' or 'payable to bearer' should appear on the note. \,; The note must not contain any other order or promise. This means that no conditions, such as 'if I get my raise' or the like, should be stated in the note. I hope that the information I have provided meets your Expectations. Please feel free to contact me should you have any Questions. Yours sincerely Christine Chang 12 It is called a 'transferable record'. C 2 e 3 b 4 a 5 d Defines 2 applies to 3 provide 4 contains Creates Exempt 2 application 3 enforceable contracts The problem with the promissory note is that only one of The principals is available to sign it. It could be a problem because of recent changes to the Law which may result in the position of the client being Uncertain in the event that all the principals fail to sign The note. True 2 False 3 True 4 True 5 False 6 True B 2c 3a F, I 2 I, F 3 F, I Suggested answer Dear Mr. Lawson, I am writing to you in respect of the promissory note Which the prospective buyers of your property intend to Give you for a down payment. I would like to advise you Not to accept this note in its present form for the following reasons: V The safest way to bind all the principals is to have all Of them sign the note as makers. C As you know, one of the principals is currently serving a Jail sentence on a financial charge. I do not recommend Entering into a business transaction with a person Whose financial trustworthiness is questionable. I propose that you refuse to accept the note unless it has Been signed by all of the principals. I also suggest that I Contact the agent on your behalf and inform him of this Fact. I can recommend ways for him to obtain the Signatures of the other principals quickly (fax, e-signature, Courier), as all of the parties involved are interested in Concluding the deal as soon as possible. I look forward to receiving further instructions from you in This matter. Yours truly J.P. Wadman Language Focus Monetary Impose E.g.; e.g. Principle 4 incur 5 make a requirement I.e. 3 per annum 4 inter alia QIincipal Reliable Uniform uniformly, uniformly In 3 of 4 for 5 to 6 in Due 3 maturity 4 principal Lawful Of 8 in Per annum 6 Maker Unit 13 Loan 2 mortgage 3 pledge 4 lien Seize 2 sell 3 defaults 4 owns 5 has Attaches 7 attaches 8 crystallises 9 make However, in the case of quasi-security, ... while the debtor Only... Date: 2015-12-11; view: 1101
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