Week 6 Assignment “Negotiability”
Business II
March 7, 2016

Joelle writes on a piece of paper that he promised to pay Rio $1000 on demand, he also signs the note with all these things this is negotiable instrument called promissory note. Promissory note is a document passed from one person to another that is a written and signed unconditional promise to pay a specified sum of money on demand or at a definite time to order (to specific person or entity) or bearer. Promissory notes generally involve just two parties: the person signing the note who is promising to pay money (the “maker” of the note); and the person to whom the note specifies the money is to be paid (the “payee” of the note) (Promissory Note). Now just because you write on a piece of paper that you owe someone money and sign it doesn’t mean that you have created a negotiable instrument under the UCC. There are certain things that are require in order for it to be a negotiable instrument. These things include a signed document of promising payment of money and it must be unconditional, the amount of money must be a fixed amount (with or without interest charges), the instrument must be payable to bearer, the promise must be payable on demand or at a definite time, and the promise must not state any other instruction by the person promising or ordering payment to do any act in addition to the payment of money. Joelle note contain all of the above, which makes it a negotiable instrument called a promissory note. Joelle promissory note is negotiable but both parties need to agree with any new terms. Promissory notes are a formal written contract that may become negotiable if both parties sign and agree to the terms. However, open negotiations must also be noted within the promissory note. Joelle and Rio promissory note can become negotiable if both parties sign and agree to the new terms and the new negotiations must also be noted within the promissory note.

REFERENCES www.wikipedia>wiki>Promissory_note; Promissory Note; retrieved on March 7, 2016