Question 3

(a)Define a promissory note.

(b)State whether each of the following negotiable instruments is valid.

(i) A bill reads "pay ＄1,000 out of money to be received by you from Mr. Gao".

(ii) A bill of exchange reads "pay ＄10,000, charge the same to the sale proceeds of 100 cartons of toys shipped per SS Mingzen".

(iii) A bill of exchange which is stated as being payable on arrival of goods at a specified port.

(iv) Is a bill of exchange which is payable on a person's marriage valid？

(v) A bill of exchange is drawn in favour of a minor, a person below the age of eighteen.

(vi) A bill of exchange reads "we hereby request you to pay on our account to the order of Gao＄1,000".

(vii) A bill of exchange reads "pay to our order the sum of ＄5,000 in accordance with your undertaking authorized through Bank of Hongkong".

(viii) Is a cheque which reads "pay order" valid？

(ix) A promissory note reads "I promise to pay on or before Dec 1st, 1998 Mr. Gao or order the sum of ＄10,000 only for value received. Signed".

(x) Is a promissory note which reads "to be paid back in full by 1 July, 1988" valid？