QUESTION
In Negotiable Instrument the face of the instrument is: "Pay to the order of A or bearer 10k" is this an order or bearer instrument? Thank you!
Asked on Mar 09th, 2016 on Business Law - California
1 ANSWER
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It really makes no difference since both are negotiable instruments. Your wording is an "order" draft or note or instrument. The words "or bearer" mean that the A may "negotiate" (sell) the note and B and B as the bearer may then present the note for payment according to its terms.
Answered on Mar 10th, 2016 at 5:57 AM