Which of the following is NOT a requirement for negotiability:

Social Studies

1 answer:

Papessa [141]2 years ago

3 0

Answer:

b. Be signed by the payee

Explanation:

Negotiability is one of the concept of commercial paper. A commercial paper refers to a contract in which money will be paid.

Negotiability is document that is written and signature appended by the maker or drawer which contains an unconditional order or promise to pay fixed sum of money upon delivery at a certain time and made to the bearer.

An example of a negotiable instrument is a cheque which can be signed a number of times by different people involved in the deal.

The requirements for negotiability are;

Be payable to order or bearer

Be payable on demand at a definite time

State a fixed amount of money

Be an unconditional promise or order to pay

Be in writing

Signed by the maker or drawer

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