State whether the following provisions in a note impair or preclude negotiability, the instrument in each instance being otherwise in proper form. Answer each statement with “Negotiable” or “Nonnegotiable” and explain why.
a. A note signed by Henry Brown in the trade name of the
Quality Store.
b. A note for $850, payable to the order of TV Products Company, “If, but only if, the television set for which this note is
given proves entirely satisfactory to me.”
c. A note executed by Adams, Burton, and Cady Company, a
partnership, for $1,000, payable to the order of Davis, payable only out of the assets of the partnership.
d. A note promising to pay $500 to the order of Leigh and to
deliver ten tons of coal to Leigh.
e. A note for $10,000 executed by Eaton payable to the order
of the First National Bank of Emanon, in which Eaton
promises to give additional collateral if the bank deems
itself insecure and demands additional security.
f. A note reading, “I promise to pay to the order of Richard
Roe $2,000 on January 31, 2019, but it is agreed that if the
crop of Blackacre falls below ten bushels per acre for the
2018 season, this note shall be extended indefinitely.”
g. A note payable to the order of Ray Rogers fifty years from date
but providing that payment shall be accelerated by the death
of Silas Hughes to a point of time four months after his death.
h. A note for $4,000 calling for payments of installments of
$250 each and stating, “In the event any installment hereof
is not paid when due, this note shall immediately become
due at the holder’s option.”
i. An instrument dated September 17, 2018, in the handwriting of John Henry Brown, which reads in full:
“Sixty days after date, I, John Henry Brown, promise
to pay to the order of William Jones $500.”
j. A note reciting, “I promise to pay Ray Reed $100 on
December 24, 2018.”