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Fixed Payment Instrument

The requirement that, to be negotiable, an instrument must promise or order payment of a fixed amount of money
a. applies only to principal
b. applies only to interest
c. applies to both principal and interest together
d. applies neither to principal nor interest

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The following are requisites in terms of negotiability. Take a look at number 6. That will help you figure your answer - remember that interest is a variable, and is a constantly changing number, it therefore is not fixed.

1. Must be in writing

2. Signed by maker or drawer

3. Promise or order
In an ordinary draft, the requirement is usually satisfied by inserting the drawee's name immediately following the
word ...

Solution Summary

8 Step process to determining if an instrument is negotiable.