Reel Time Film Production Company issues a promissory note as a demand instrument with a due date of October 5.Syncopated Loan Company accepts the note.Syncopated has notice that the note is overdue if the firm takes the note

Question

Quizplus · Accepted Answer

A demand instrument can be presented for payment at any time, but it is considered overdue if it is not paid within a reasonable time after demand. In this case, the due date is October 5, but because it is a demand instrument, it can be presented for payment at any time after that date. However, if Syncopated Loan Company takes the note an unreasonable amount of time after October 5, it could be considered to have notice that the note is overdue. Therefore, the best choice is A.

Reel Time Film Production Company Issues a Promissory Note as a Demand