Sandy signs a negotiable instrument that orders Sally to pay $1,000 to the order of Pat on May 4,2011.What type of instrument is this?

Question

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This is a time draft because it specifies a future payment date (May 4, 2011) and is payable to the order of Pat, indicating it can be negotiated to another party. A promissory note would be a promise to pay a specific amount, but not necessarily to a specific person or by a specific date. A check would be drawn on a bank account and would require a signature from the account holder. A sight draft would be payable upon presentation, not at a future date. A money order is a payment instrument purchased in advance with a specific amount and payee designated.

Sandy Signs a Negotiable Instrument That Orders Sally to Pay