Question

QUESTION 3. An instrument reads as follows

$25,000                                   Mt. Pleasant MI                      February 14, 2008

I promise to pay to the order of Paste Jewelry Corp., $25,000 within 10 days after the sale of my three carat diamond ring. I pledge the sale proceeds to secure my obligation hereunder.

                                                                        s/Robert Mack

Is the instrument negotiable?

What about the reference to the payment based on the sale of the ring?

What about the time for payment? Date certain?

Is this a negotiable promissory note?

Is it in writing?

Is the amount due certain or can be calculated based on the face of the instrument?

Is this Order paper?

Answer 1

ans 1 No the instrument is not negotiable as it must to be paid within a definite time or is payable on demand
Now in this case it is payable after ten days when the event will occur , as time when event will occur is not known
hence there is no definite time and thus not negotiable.
ans 2 Payment will be made within 10 days after the diamon ring is sold
ans 3 Date is ot certain when three carat diamond ring is sold after that it is 10 days, but the time when the event will
occur is not known hence date is uncertain.
ans 4 No it is not a promissory note, as its not negotiable and the date of payment is also uncertain.
ans 5 Yes it is in writing
ans 6 Yes amount is certain it can be seen on the face of the instrument $25000.
ans 7 No, its not an order paper as when the event will occur than only payment will be made
Its not an order to third party.
If any doubt please comment