Explore BrainMass

Explore BrainMass

    Is this a negotiable instrument?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    To be a valid Negotiable Instrument certain requirements are necessary. Suppose a taxpayer wanted to protest the amount he had to pay to the Internal Revenue Service. While playing a round of golf under the hot Florida sun, he writes on the back of his old, sweaty, golf shirt "To: Bank of Mine, account #4312, Pay to the order of The IRS" and fills in a dollar amount. He signs it by dipping his hand into the mud around the waterhole on the 15th green and making a muddy hand print as his mark at the bottom of the shirt. When he finishes playing the 18th hole, he takes off his stinky shirt and mails it along with his tax return to the IRS.

    Is the shirt a negotiable instrument?

    © BrainMass Inc. brainmass.com June 4, 2020, 3:24 am ad1c9bdddf

    Solution Preview

    Following are the requirements for a negotiable instrument, of which a check is one type:

    To be valid a negotiable instrument must meet four requirements. First, it must be in writing and signed by the maker or drawee. Second, it must contain an unconditional promise (promissory note) or order (bill of exchange) to pay a certain sum of money and no other promise except as authorized by the Uniform Commercial Code (UCC). Third, it must be ...

    Solution Summary

    The 305 word cited solution explains the requirements for a valid negotiable instrument and then examines the case to determine whether the golf shirt can be valid.