Question

Shawn will pay Craig with a negotiable instrument, and Shawn plans to involve a third party in that process. What instrument should he use

Answer 1

Shawn should use a promissory note as a negotiable instrument to involve a third party in the payment process.

Step-by-step explanation:

Shawn should use a promissory note as a negotiable instrument to involve a third party in the payment process. A promissory note is a written promise by one person (the issuer) to pay a specific amount of money to another person (the payee) at a future date or upon demand. It is commonly used in business transactions to facilitate payment.

For example, if Shawn owes money to Craig and wants to involve a third party, he can issue a promissory note to the third party, stating that he will pay a specific amount to Craig. The third party can then transfer the promissory note to Craig, who can collect the payment from Shawn when the note matures.

Using a promissory note provides a formal and legally enforceable record of the transaction and helps protect the rights and interests of all parties involved.