4. No Particular Form Of Word, Necessary

In writ-ing a negotiable note no particular words need be used but the most frequent words of negotiability are, "to order" or "to bearer." Any words, however, which convey the idea that the maker intended to make a negotiable note, will have that effect. May not an ignorant maker, when writing his note promising to pay John Smith $1,000, intend to give him a negotiable note? Perhaps so. Yet he has written a promise to pay John Smith and no other person. This note certainly is not negotiable in form. Nevertheless, if he intended to give him an ordinary negotiable note, and supposed that this form was sufficient, its true character and purpose could be established in a proper court. The reforming of instruments in order that they may fulfill the intention of the parties is the work of a court of equity, and the true intent and purpose of a promissory note can be enforced when they are clearly proved, as well as the true intent and purpose of any other instrument. There is, however, rarely any occasion for taking such action with respect to a promissory note.

The promise must be unconditional. Were conditions attached, the promise might become so badly entangled that no one could tell what it really was. The law, therefore, is imperative in this regard. The promise must be certain, without any doubt or alternative.

The promise must be to pay money. Before 1860, when state bank notes were in circulation, they often differed greatly in value, and this fact often led the makers of promissory notes to depart from the accustomed phraseology in drawing them. They would promise to pay in the notes of a particular bank, or in addition to the stated amount, "the current rate of exchange," or "in current funds" at a place mentioned, or "in current bank notes." The effect of these additions was in most states to destroy their negotiability. A note that is to be paid in goods or produce is not negotiable.

The promise to pay must be to pay a definite amount of money. A promise, therefore, which also includes the payment of the collection fees, should there be any, would not be definite in amount, and the note would not be negotiable. Such is the law in some states, but not in most of them.

The promise of time of payment must be definite. A note containing a promise to pay at the opening day of the next international fair, or the next snowstorm, would not be negotiable because the event might never happen.

Any condition to a promise which is not to go into effect until after the note matures, does not affect its negotiability. A maker therefore, who should promise that if he did not pay his note when it became due, he would pay a double rate of interest or give additional security, would not, by this additional promise, affect its negotiability. In the states which hold that the payment of collection fees do not affect the negotiability of a note, the reasoning is the same; the stipulation does not go into effect until after the maturity of the note.