Section 5 Unconditional Order or Promise to Pay

• Library: Commercial Law 2007

To be negotiable, an instrument must contain an express, unconditional “promise” or “order” to pay. Section 400.3-104(a), RSMo Supp. 2006. A promise is defined in § 400.3-103(a)(9), RSMo Supp. 2006, to mean a “written undertaking to pay money signed by the person undertaking to pay” and excludes a written acknowledgment of an obligation by the obligor, such as an I.O.U., unless the obligor also undertakes to pay the obligation. Mo. Ann. Stat. § 400.3-103(a)(9) cmt. 3 (Westlaw through 2006 legislation). An order is defined in § 400.3-103(a)(6) to mean a “written instruction to pay money signed by the person giving the instruction.” The instruction may be addressed to any person, including to the signer giving the instruction, such as in the case of a cashier’s check, or to one or more persons jointly or in the alternative but not in succession. Mo. Ann. Stat. § 400.3-103(a)(6) cmt. 2. The authorization of...