Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2014 Thirty days after date I promise to pay Don Dole or order, Five Thousand Dollars. The holder of this instrument shall have the election to require the assignment and delivery to him of my 100 shares of Brookside Iron Works Corporation stock in lieu of the payment of Five Thousand Dollars in money. (Signed) Sam Sharpe Is this instrument negotiable? Explain.
Sam Sharpe executed and delivered to Don Dole the following instrument: Knoxville, Tennessee May 29, 2014 Thirty days after date I promise to pay Don Dole or order, Five Thousand Dollars. The holder of this instrument shall have the election to require the assignment and delivery to him of my 100 shares of Brookside Iron Works Corporation stock in lieu of the payment of Five Thousand Dollars in money. (Signed) Sam Sharpe Is this instrument negotiable? Explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sam Sharpe executed and delivered to Don Dole the following instrument:
Knoxville, Tennessee May 29, 2014 Thirty days after date I promise to pay Don Dole or order, Five Thousand Dollars. The holder of this instrument shall have the election to require the assignment and delivery to him of my 100 shares of Brookside Iron Works Corporation stock in lieu of the payment of Five Thousand Dollars in money.
(Signed) Sam Sharpe
Is this instrument negotiable? Explain.
Expert Solution
Step 1
Negotiable instrument:-It is a signed document that one promises to pay as per the date specified in the legal document. It can be saleable in the market.
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