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Individal Work

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Submitted By Howard1992
Words 336
Pages 2
Abstract
You are interested in buying a new car and Bob lets you borrow one of the new cars on his lot for a week to test drive. You decide you like the car and when you visit Bob to drop off the car, he hands you the following document and a pen
May 1, 201x

I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum.

What type of instrument is this? Does this instrument meet the requirements for negotiability under the UCC?

INDIVIDUAL WORK
The above example is a partial Promissory Note. The reason that it is a partial promissory note is because the document is missing key values to become a full legal document. The above example does not state all the requirements that need to be meant as the payments are being made. It also does not have the time frame for which the payments are to be received and the time frame to pay the balance in full.
The example does not meet the requirements of the UCC due to it does not list what will happen if the payments are not made. The documents also does not state how the payments are to be made and how the payments will be broken down with the interest that is going to be paid for the purchase. The document also does not have the full date that the documents was created. The document would also need to be signed by the owner of the car company which will state that he agrees with the term of the promissory note. The way that the document is worded there is no negotiating of the amount for the car or for how the car will be paid for, from the way that the documents is worded the owner of the car is expecting that the full price of the car plus 7% interest is due at the time of signing.

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