"I, Saxony, promise to pay Bavaria the amount of Php 18,000.00 eight days after completion of the on-going construction of my house. Signed, Saxony." Is the note negotiable?
"I, Saxony, promise to pay Bavaria the amount of Php 18,000.00 eight days after completion of the on-going construction of my house. Signed, Saxony." Is the note negotiable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A promissory note states, on its face: "I, Saxony, promise to pay Bavaria the amount of Php 18,000.00 eight days after completion of the on-going construction of my house. Signed, Saxony." Is the note negotiable?
a. Yes, since it is payable at a fixed period after the occurrence of a specified event.
b. No, since it is payable at a fixed period after the occurrence of an event which may not happen.
c. Yes, since it is payable at a fixed period or determinable future time.
d. No, since it should be payable at a fixed period before the occurrence of a specified event.
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