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As per legal aspect, a promissory note is a negotiable instrument if it is not u

ID: 373819 • Letter: A

Question

As per legal aspect, a promissory note is a negotiable instrument if it is not under any specific condition. But as in the case of Barton v. Scott Hudgens Realty & Mortg. The specific condition is mentioned that “This amount is due and payable upon evidence of an acceptable permanent loan . . . and upon acceptance of the loan commitment.” So this promissory note stands non-negotiable if there is no evidence of permanent loan or loan commitment.

This note can be a negotiable instrument if the evidence of permanent loan is available with Scott Hudgens Realty & Mortg.

Explanation / Answer

In a paragraph is two answer the following case: “Barton signed a promissory note promising to pay to the order of Scott Hudgens Realty & Mortgage, Inc., the sum of $3,000. The note stated, “This amount is due and payable upon evidence of an acceptable permanent loan . . . and upon acceptance of the loan commitment.” Was the note negotiable? Why or why not? [Barton v. Scott Hudgens Realty & Mortg.]”