Explain the requirements of negotiability
An instrument must comply with seven requirements in order to be negotiable. If it lacks any of these requirements, the document is not negotiable. The seven requirements are:
1. The instrument must be in writing and signed by the party executing it.
2. The instrument must contain either an order to pay or a promise to pay.
3. The order or the promise must be unconditional.
4. The instrument must provide for the payment of a fixed amount of money.
5. The instrument must be payable either on demand or at a fixed or definite time.
6. The instrument must be payable to the order of a payee or to bearer.
7. The payee and the drawee must be designated with reasonable certainty.?
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A licensee would not be disciplined for:
A. accepting compensation from both parties in a transaction without a written disclosure B. failing to adequately supervise an employee who misrepresents a property to a prospect C. failing to include the firm's name, as licensed, in an advertisement D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Which is more likely to generate a false acceptance?
A) Verification B) Identification C) Both verification and identification are equally likely to generate a false acceptance. D) None of the above