Review the section on Negotiability in Ch. 15 (15-1c).

Leakproof Inc received a promissory note from Pilot Industries.

1. List the six things Leakproof will look for to determine if the note is negotiable.

2. Explain why these requirements are necessary for a court to determine the intent of the parties. What is the purpose of negotiability and how do these requirements enable negotiability? Consider what parties are seeking when they hold a negotiable instrument.