25-1; 25-2; 25-4

25-1. Negotiable Instruments. Sabrina Runyan writes Electronics, eager to sell the system to Keynes, agreed to accept the following note on a sheet of paper: "I, the undersigned, the promissory note, which read, "I, Austin Keynes, promise to do hereby acknowledge that I owe Leo Woo one thousand pay to Friedman Electronics or its order the sum of $150 per dollars, with interest, payable out of the proceeds of the sale month for the next six months." The note was signed by Austin of my horse, Lightning, next month. Payment is to be made Keynes. A week later, Friedman Electronics, which was badly on or before six months from date." Discuss specifically why in need of cash, signed the back of the note and sold it to the this is not a negotiable instrument. (See Types of Negotiable First National Bank of Halston. Give the specific designation Instruments.) 25-2. Negotiability. Juan Sanchez writes the following note Instruments.) on the back of an envelope: "I, Juan Sarshez, promise to pay 254. Bearer Instruments. Adam's checks are imprinted Kathy Martin or bearer $500 on demand." Is this a negotiable with the words "Pay to the order of" followed by a blank. instrument? Discuss fully. (See Requirements for Negotiability.) Adam fills in an amount on one of the checks and signs it, 25-3. Promissory Notes. A college student, Austin Keynes, but he does not write anything in the blank following the wished to purchase a new entertainment system from Friedman phrase "Pay to the order of." Adam gives this check to Beth. Electronics, Inc. Because Keynes did not have the cash to pay On another check, Adam writes in the blank "Carl or bearer." for the entertainment system, he offered to sign a note promis- Which, if either, of these checks is a bearer instrument, and ing to pay $150 per month for the next six months. Friedman why? (See Requirements for Negotiability)