Recognize the elements of a negotiable instrument, as well as the Essay

Recognize the elements of a negotiable instrument, as well as the elements of rules affecting transferability and liability - Essay Example The other types of instruments are constructed in form of an order. Does the instrument in question meet the requirements of negotiability under the Uniform Commercial Code? This question can best be dealt with by comparing the elements of a negotiable instrument under the Uniform Commercial Code with the instrument in question. These elements are: Writing can be on anything that is permanent and has portability (3-103 UCC). Since the above instrument is written, there appears to be no contention that the instrument in question meets the first requirement. This is intended to authenticate it (3-401 UCC). Bob by handing over a pen to the maker in this question implicates that he wants the maker to put his signature and make him be bound by the document. The maker here will be bound by making any mark on the instrument which purports to be a signature. â€Å"The promise must be an affirmatively written undertaking more than a mere acknowledgement of a debt† (Howard 1964). Apart from acknowledging that he has a debt amounting to $20 000 plus interests the maker further makes an affirmative undertaking to discharge the debt. This can be ascertained by the use of the phrase ‘I promise to pay’. Payment cannot be conditional and the promise or order cannot be subject to rights or obligations stated in another source save for any exception provided by the Uniform Commercial Code. The document in question does not imply any condition. Take for instance if the document was worded in the following manner; â€Å"I promise to pay to the order of Bobs Auto Emporium $20 000 with interest...defaulting by which I shall be liable to pay double the value of interest†, this is a prima facie case of a condition and such an instrument shall be void (Martindale 2011). Any instrument payable in money are negotiable (3-304 UCC).The above instrument is payable at a fixed amount of $20 000 and hence satisfies this test of negotiability. The Uniform