Negotiable Instruments (also called commercial paper) are vital to the functioning of modern commerce. How do we create a negotiable instrument? Is the Instrument in end of chapter case 22.9 a negotiable instrument? Why or why not? What are the requirements for Holder in Due Course status? Are the requirements for Holder in Due Course satisfied in end of chapter Case 23.6? Why or why not?
What if Joe takes it to Kinko's and copies it and gives it to Kim for a debt that he owes her? Prior to giving it to Kim, Joe wrote on the copy, in writing that looks just like Kim's, "This note is payable on demand." He walks up to Kim, gives her the paper, and writes on it, "I assign my rights to this negotiable instrument to Kim." Is Kim a holder in due course?