Negotiatiable Instrument - Payable on Time or on Demand

The video tutorial explains the elements of negotiability concerning payment on time or demand. It discusses how negotiable instruments are payable either on demand or at a specified time. If no indication is present, it is assumed to be payable on demand. External evidence can suggest a time payment, but if not indicated in the instrument, it may not be negotiable. Instruments with ascertainable dates remain negotiable, even with acceleration or prepayment clauses.

What determines if a negotiable instrument is payable on demand?

• A specific date mentioned on the instrument

• The holder's request for payment

• The issuer's discretion

• The bank's approval

If an instrument lacks a clear indication of payment terms, what is it generally assumed to be?

• Non-negotiable

• Payable on time

• Invalid

• Payable on demand

What can cause an instrument to lose its negotiability?

• Lack of a specified payment date

• Presence of an acceleration clause

• Being payable on demand

• Having a prepayment option

Under what condition does a payable on time instrument remain negotiable?

• When the date is reasonably ascertainable

• When it is issued by a bank

• When it has no clauses

• When it is payable on demand

Do acceleration clauses affect the negotiability of an instrument?

• Yes, they make it non-negotiable

• Only if they are combined with prepayment clauses

• No, they do not affect negotiability

• Only if they are not clearly stated