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Title: Which of the following is true for the validity of the new promissory note made Post by: nkylem on Oct 16, 2014 Roger, a certified lawyer, borrowed money from Jax to start a business. He gave a promissory
note to Jax promising to pay the money back anytime within the next five years. But in order to accept the note Jax demanded a security deposit. Roger gave the gold that he owned as security. Roger in turn demanded that a specific clause be added to the promissory note to allow faster repayment of the lawn in case he inherited money within the next five years. But even after five years, Roger was unable to complete payment. He made a new promissory note promising to finish payment within the next year, and promised to provide free legal service to Jax for the next two years. Which of the following is true for the validity of the new promissory note made by Roger? a. It must contain interest on the old principal to become a valid instrument. b. It must contain a specific date or time to be considered valid. c. It is a nonnegotiable instrument. d. It is a negotiable instrument if Jax accepts it. What kind of promissory note did Jax secure from Roger for the original amount? a. a collateral note b. a mortgage note c. an installment note d. a time note Which of the following clause did Roger ask to add in the first promissory note? a. prepayment clause b. acceleration clause c. extension clause d. forestallment clause Title: Re: Which of the following is true for the validity of the new promissory note made Post by: bio_man on Mar 1, 2017 Which of the following is true for the validity of the new promissory note made by Roger?
A) It must contain interest on the old principal to become a valid instrument. B) It must contain a specific date or time to be considered valid. C) It is a nonnegotiable instrument. D) It is a negotiable instrument if Jax accepts it. Answer: C What kind of promissory note did Jax secure from Roger for the original amount? A) a collateral note B) a mortgage note C) an installment note D) a time note Answer: A Which of the following clause did Roger ask to add in the first promissory note? A) prepayment clause B) acceleration clause C) extension clause D) forestallment clause Answer: B |