The six requirements which a promissory note must meet

In 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: 1105