Final answer:
An instrument must meet six requirements to be considered negotiable: it must be written and signed, contain an unconditional promise to pay a fixed amount of money, be payable on demand or at a determinable future time, be payable to order or bearer, have a clear payee, and not require additional acts besides the payment of money.
Step-by-step explanation:
To determine if an instrument is negotiable, it must meet six specific requirements. These are:The instrument must be in writing and signed by the maker or drawer.It must contain an unconditional promise or order to pay a fixed amount of money.The payment must be payable either on demand or at a fixed or determinable future time.The instrument must be payable to order or to bearer, meaning it must specify to whom the payment is to be made.There must be a certainty regarding the parties involved, specifically the payee.
The instrument must not require the performance of any act in addition to the payment of money.If an instrument meets all of these requirements, it can be considered a negotiable instrument, which is important as it affects the rights and duties of parties and the instrument's legal treatment in financial transactions.In writing: The instrument must be in writing, either handwritten or printed.Signed: The instrument must be signed by the maker or drawerUnconditional promise or order: The instrument must contain an unconditional promise to pay or an order to pay a certain amount of money.