These legal drafts and notes are available in wide varieties. There is flexibility as the payee can receive the funds in cash or transfer the document to another party for consecutive usage.A payee can present the document to encash it or receive the payment as promised within the specified date or on-demand. In addition to the payee, the time is also predetermined and is certain.A negotiable instrument always mentions the payee’s name, which signifies making the payment to a specific person or firm.
This means the title gets transferred when the note is handed over to the consecutive parties. As named on the instrument, the payee enjoys complete ownership of the legal document.It is this feature that makes such instruments negotiable. The holder can transfer the document to another individual or entity without hassle. It is like a valid contract easily transferable from one party to another.It is a written document signed by the issuer.
NEGOTIABLE INSTRUMENTS QUIZ HOW TO
You are free to use this image on your website, templates, etc, Please provide us with an attribution link How to Provide Attribution? Article Link to be Hyperlinked For example, some of the negotiable instruments features include: These documents exhibit a wide range of characteristic traits. Hence, the payment is made to the mentioned payee only. Though unconditional, these documents must have the assignee’s name mentioned on them. They are negotiable as these notes or drafts involve two parties that agree to take forward a transaction. These legal notes make individuals and entities trust each other with payments and repayments. The goods involved have monetary and tangible economic value, which may be recorded and presented in the company's financial statements. These instruments are used as a substitute for cash to safely transfer the payments between the merchants and have a risk-free business transaction Business Transaction A business transaction is the exchange of goods or services for cash with third parties (such as customers, vendors, etc.). These are nothing but evidence of indebtedness, as the instrument holder has an unconditional right to recover the amount of money stated in the instrument from its maker. Such instruments are written promises signed by payers and made to payees, per which the former guarantees to make the payment on the mentioned date or on-demand. These legal documents are so prepared that the time of payment and the recipient’s name are mentioned. Open-book research, reference materials and internet searches are not permitted.Negotiable instruments assure payment/repayment to an entity or individual.Collaborating, or completing the exam with others, is not permitted.Make sure you read and study the materials prior to taking the quiz. If you are not familiar with the material before the quiz, you will find it very difficult to complete the quiz within the time limit. After you submit the quiz, you will no longer be able to access it. there will not be an opportunity to re-take it and improve your score). You will have only one attempt for this quiz (i.e. Your answers will automatically be saved, but note the timer will continue to countdown to zero and automatically submit your quiz when the provided time runs out. If you purposefully, or inadvertently, close the quiz window, you may re-enter by clicking the "Resume Quiz" button.
You have 15 minutes to complete the quiz. For 'fill in the blank", write your answer in the provided text field.
Either circle the BEST answer of those listed. For "multiple choice" items, please read the question very carefully. There are various formats represented in this quiz, such as "multiple choice", "select all that apply", and "short answer". This quiz is designed to check your gist understanding and test key points from the course materials from this module.
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