Art 3

Question 1

To be negotiable, an instrument must:

Answer 1

1. be in writing 2. signed by the maker/drawer 3. contain an unconditional promise or order to pay a fixed amount of money to order or bearer 4. payable on demand or at definite time 5. no additional undertaking or instructions

Question 2

To be negotiated, an order paper must

Answer 2

1. be delivered and
2. properly endorsed by the holder

Question 3

HDC

Answer 3

1. takes instrument as a holder
2. for value
3. in good faith
4. without notice of infirmities or transaction which it arose