Question

Maurice White is an entrepreneur. He owns his own business. He creates video games using the pictures of his customers as the video game characters. Bobby Brown bought 100 custom built video games from Maurice. To pay for the video games, Bobby issued a note, payable to Maurice. The note states in pertinent part that “I, Bobby Brown, agree that I owe to Maurice White for custom video games, 75,000 dollars to be paid in 10 equal payments of 7,500 dollars each on the first of each month until paid, beginning on November 1 2018.” Bobby signed his name in cursive, but he signed it in the top right hand corner of the document instead of on the signature line. The note is not dated.
**(There are three parts to this question. Read each part carefully and be sure your answer addresses the question presented in each part. YOU DO NOT HAVE TO REPEAT THE QUESTION. JUST PUT AN A, B OR C AT THE BEGINNING OF YOUR ANSWER TO EACH SECTION).**

A. What are the elements of negotiability. (10 pts).

B. Assume that this fact scenario calls into questions at least two of the elements of negotiability. Identify two elements of negotiability that are raised by this fact scenario and explain each element and whether the facts support the two elements you identified. But, in answering this part of the question, do not state your conclusion as to whether or not this is a negotiable instrument. Instead, you should just discuss the two elements you identified. (15 pts).

C. State your conclusion as to whether this is a negotiable instrument. Explain why or why not. You can refer to your answer to the previous parts of this question to support your conclusion. (5 pts).

Answer 1

A)

Six elements of Negotiability- If it fails one of these tests it is non-negotiable. All 6 must be on the front of the document.

1 Be in Writing- (Easily transferable)

2 Be signed by the maker or drawer-The person must have the intent to be willingly bound to the document. Can sign anywhere on the front of the document.

3 Unconditional Promise or order to pay-

4 Fixed Amount of Money-

5 Payable on demand or at a definite time-

6 Payable to the order or to bearer

B) The two elements of negotiability that are raised by this fact scenario are

1. Bobby Brown did not put a date on the document. Putting a date is mandatory.

2. Bobby Brown signed it in the top right-hand corner of the document instead of on the signature line. The signature is mandatory and the note can be signed anywhere on the front of the document.

C) Since the note is not dated, it becomes a non-negotiable instrument.

The signature is mandatory and the note can be signed anywhere on the front of the document. He has signed the note on the top right-hand corner.