In order to make a Draft or a note an acceptable cash equivalents for commercial

Question

In order to make a Draft or a note an acceptable cash equivalents for commercial transactions, the paper must A) have all of the magical ingredients on its face (quality as a negotiable instrument) B) be transferred in a magical way (negotiated) C) To a person with magical powers (holder in due course) This chapter deals with the six requirements for a)...what are they? In order to make a Draft or a note an acceptable cash equivalents for commercial transactions, the paper must A) have all of the magical ingredients on its face (quality as a negotiable instrument) B) be transferred in a magical way (negotiated) C) To a person with magical powers (holder in due course) This chapter deals with the six requirements for a)...what are they? A) have all of the magical ingredients on its face (quality as a negotiable instrument) B) be transferred in a magical way (negotiated) C) To a person with magical powers (holder in due course) This chapter deals with the six requirements for a)...what are they?

Explanation / Answer

Six requirements of a Negotiable instrument as given below-

1.      It is a written document.

2.      The instrument should have an unconditional promise or order to pay.

3.It must be signed by the writer/creator of the instrument.

4.Payment is to be made either on demand or at a fixed future time (a time should be fixed).

5.The document must contain either the words of negotiability -"to the order of"- or words mentioning that it is a bearer instrument.

6.It must be for a fixed amount in money

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