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Negotiability of Notes

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Nancy and the Note

Nancy read the note that Richard had just given her. She was doing some home repair for Richard. The note represented the $10,000 that Nancy and Richard agreed upon for all of the work. The signed note read as follows:

I, Richard Drum, hereby promise to pay to the order of Nancy Hardy ten thousand dollars ($10,000). This sum is contingent upon my ability to receive a loan in the same amount from West Bank International. I give this negotiable instrument as the full payment for Nancy's Hardy's repairs to my home.

Is this note negotiable? Discuss why or why not.

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Solution Summary

This solution discusses the negotiability of notes.

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No this is non-negotiable and it is not a promissory note either. This is because, per the definition of what these items are required to be, ...

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