1. The accounting department of Jimbringinger Company receives an instrument that states, “January 6, 2012. Thirty days after date, I promise to pay to the order of cash, $700 (seven hundred and 00/100 dollars), in San Francisco, California, with interest at the rate of 7% (seven percent) per year. This instrument is secured by a contract for the sale of a barbeque grill. Due April 15, 2012. [Signed] Ed Jacobite.” What type of instrument is this? Is it negotiable? If not, why not? Cite your textbook for support.
2. On a sheet of paper, Janet writes, without her signature, “I acknowledge that I owe Steve $600, payable out of the proceeds of the sale of my car, a 2001 Ford XLTR, which I promise to advertise ‘For Sale’ next week. Payment is to be made on or before six months from today.” What type of instrument is this? Is it negotiable? If not, why not? Cite your textbook for support.