Explain the term ‘promissory note’.
Explain the characteristics of negotiable instruments.
- Promissory note is an unconditional note in writing undertaking to pay a sum certain in money to the specified person
Characteristics of negotiable instruments
- No notice of transfer needs to be given.
- Consideration is always assumed to have been given.
- If made payable to bearer it is negotiable by mere delivery but if payable on order is negotiable by delivery and endorsement.
- It’s not affected by the doctrine of privity to contract.
- Transferee acquires title if he takes it in good faith and for value.
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