An ordinary IOU satisfies the "unconditional promise or order to pay" requirement for a negotiable instrument.

Question

Quizplus · Accepted Answer

The promise or order to pay must be specific and not implied in order for an instrument to be negotiable.The language must be affirmative in nature.For example,simply acknowledging a debt does not create language for payment; therefore,a common IOU is not a promise or order to pay and thus cannot be a negotiable instrument.

An Ordinary IOU Satisfies the "Unconditional Promise or Order to Pay