Give an Account of the Requirement for a Fixed Amount

question 79

Essay

Give an account of the requirement for a fixed amount in negotiable instruments?

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Definitions:

Special Endorsement

An endorsement on a negotiable instrument, such as a check, specifying the person to whom or the entity to which the instrument is to be paid.

Promissory Note

A promise in writing, signed by the maker, to pay a sum certain in money to the person named therein, or bearer, at some fixed or determinable future time, or on demand.

Maker

In finance, the maker is the party that creates or issues a promissory note, thereby agreeing to pay a certain amount of money to a payee at a future date.