You are interested in buying a new car and Bob let's you borrow one of the new cars on his lot for a week to test drive. You decide you like the car and when you visit Bob to drop off the car, he hands you the following document and a pen:
May 1, 201x
I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum.
What type of
instrument is this? Does this instrument meet the requirements for negotiability under the UCC?
It is a promissory note. It does not meet the requirements for negotiability under the UCC because it fails to state that it is is payable on demand or at a definite time.
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