Marit worked for Town & Garden, a landscape design service owned by Donald. Marit signed a note payable to Donald to purchase an ownership interest in Town & Garden. The note, which was undated, required installment payments, but Donald never asked for them. One year later, Marit quit Town & Garden. Donald tried to terminate Marit’s interest in the business, asserting that the note had not been paid.

Was Marit’s note a demand note? Yes. Instruments that are payable on demand may state “payable on demand,” or the nature of an instrument may indicate that it is payable on demand. In addition, if no time for _______________ is specified, then the instrument is payable on demand. Here, the note required installments but did not state a date for their _______________. Was the nonpayment of the note a proper reason for the termination of Marit’s interest in Town & Garden? No. Donald did not demand _______________ on the note. Thus, Marit’s obligation to make it had not arisen, and the attempted termination of her interest in Town & Garden was improper.