[Anonymous]

ok so in the question there is a draft, and its payable to the order of X 10 days after presentment.

I thought this would be non negotiable due to 10 days after presentment not being a definate date, but the anser says its a negotiable draft. Am I missing something here???

[MikeHoncho]

I think because it is a draft it must satisfy either the definite time requirement or payable on demand requirement. Sight drafts and checks for example are usually payable on demand. For example, my aunt gives me a check for $20 on my birthday today, but she puts next weeks date on it. If I bring it to the bank tomorrow, they will most likely honor it.

Refer to UCC 3-108

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

I think because it is a draft it must satisfy either the definite time requirement or payable on demand requirement. Sight drafts and checks for example are usually payable on demand. For example, my aunt gives me a check for $20 on my birthday today, but she puts next weeks date on it. If I bring it to the bank tomorrow, they will most likely honor it.

Refer to UCC 3-108

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

It could also be considered a time instrument. It is payable at a specific time after issue (this does not alter negotiability). If it was conditioned on the happening of some other event, then that would cause it to be nonegotiable.

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[MikeHoncho]

It could also be considered a time instrument. It is payable at a specific time after issue (this does not alter negotiability). If it was conditioned on the happening of some other event, then that would cause it to be nonegotiable.

Done: 5/22/14

"Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut."
- Ernest Hemingway

[Author]

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