Question

(a) Jack creates a promissory note, payable to Tim, promising to pay him $200 worth of bread within 30 days. Can Tim negotiate the note to Karen? Why or why not? What section of the law applies?

(b) Does it matter if the note was written or painted on a wall? What section of the law applies?

(c)  What would be the result if Jack jokingly made the note payable to a fictional character instead of Tim? What section of the law applies?

Answer 1

a) Yes, Tim can transfer the note to karen because it is a negotiable Instrument. As per Negotiable Instrument Law , A Negotiable Instrument has the property of Transferability and hence it can be transferred any number of times.

b) The note should be written in a paper and it should be duly signed but the parties as per section 5 of the law and it should not be written on a wall.

c) As per Section 78 ,It should be made on a specific person only and it should be duly signed by both the parties and hence it cannot be made on a fictional character.