Question

Negotiability

On a piece of paper, Joelle writes, “I promise to pay Rio $1000 on demand.” Joelle signs the note.

What type of instrument is this?

Is it negotiable?

If not,why not?

Give me an answer please be 400 words or more and perhaps in your own words thank you.

Answer 1

This is promisory note.
Promisory note is an instrument in writing not being a bank note or currency note containing an unconditional undertaking signed by the maker to pay a certain sum of money to a certain person or to the order of certain person or to the bearer.The amount to be paid must be certain, otherwise the instrument will be invalid. For example, A promises to pay B $500 and all other sums which become due. This is not a valid promissory note because the sum is not certain as nobody knows what other sums will become due in the above case.
However, a promise to pay money with interest is valid. If the rate of interest is not given, it will not be valid. For example, A's promise to pay B $500 with interest, is not valid.
Promise to pay must be in legal tender money:
The promise to pay must be in legal tender money of that particular country. It will be invalid if it is payable in foreign money or in goods.
Bank note or currency note is not a promissory note they have been expressly excluded from the definition as they are treated at par with money. In other words, a bank note or a currency note is money itself.
For an example :-A tells b, I owe you a sum of $100 it is not a promisory note as per definition of promisory note because promisory note must be in writing. Further example: -X promise to pay a sum of $100,6month after Y marriage with Z it is also not a promisory note because X puts a condition in his promise.
Yes, it is negotiable.
It is a negotiable instrument which is freely transferrable must contain express promise to pay in writing, promise must be unconditional and signed by the maker.
On the above question joelle writes, "I promise to pay Rio $1000 on demand." It is fall in category of promisory note.