Question

An instrument reads as follows:

                                                                                                                        April 01, 2018

PAY TO THE ORDER OF EVAN PARK, FIFTEEN DAYS AFTER DATE

                                                                                                           

                                                                                                            $10,000.00

Ten Thousand and no/100s Dollars___________________

Ford Motor Company

Mt. Pleasant MI                                                          s/ Corey Jones

                                                                                    Authorized agent

RE: PAYMENT FOR TRADE IN VEHICLE

Is the instrument negotiable?

What about the reference to the payment for the car?

What about the time for payment? Date certain?

Post dated checks are valid?

Is this what is commonly called a time draft?

Answer 1

Solution

Is the instrument Negotiable

Yes, the instrument is negotiable. Becuase it was specifically written as Pay to the Order of Evan Park. Also an agent can sign the draft on behalf of the principal.

What about the reference to the payment for the car?

Reference is Payment for Trade in Vehicle which is exactly 10,000 Dollars

What about the time for payment? Date certain?

Yes, the date is certain.The instrumenty is Payable 15 days after the date of the instrument. (ie. 15 days after April 1, 2018)

Post dated checks are valid?

Post dated cheques can be drawn with a particular date only and cannot write like "15 days after date". Also ckecks are drawn on a banker only.

Is this what is commonly called a time draft?

Yes, it is called a Time Draft because a specified time period is mentioned in the Draft. Ie. 15 Days after date.