John Was Indebted to Stan on a Loan for $1,000

question 102

True/False

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
-If Bobfails to give John notice of the assignment,John may lawfully make payment to Stan.

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Definitions:

Unconditional Promise

A commitment to act or refrain from acting in a certain manner that does not rely on any conditions or occurrences for its fulfillment.

IOU

An informal document that acknowledges a debt owed by one party to another, but not necessarily specifying repayment terms.

Acknowledging A Debt

An act by which a debtor recognizes their debt and reaffirms their obligation to pay it, often to prevent the statute of limitations from expiring.

Negotiability

The characteristic of a document (such as a check or note) signifying that it can be transferred from one person to another in a manner that the recipient takes it free of most defenses that could be raised by the original maker or drawer.