Reply #256: "to pay an INSTRUMENT"

[jberryhill]

Dude, you are in the wrong UCC chapter.

Chapter 2 governs the obligations of buyer and seller in sales contracts.

We are in sales here (UCC Chapter 2), not commercial paper and negotiable instruments (UCC Chapter 3).

The sale of goods is covered under 440.2****. You are looking at something entirely unrelated.

440.3104 Additional definitions.

Sec. 3104.

(1) Except as provided in subsections (3) and (4), “negotiable instrument” means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if all of the following apply:

(a) It is payable to bearer or to order at the time it is issued or first comes into possession of a holder.

(b) It is payable on demand or at a definite time.

(c) It does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain an undertaking or power to give, maintain, or protect collateral to secure payment, an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or a waiver of the benefit of any law intended for the advantage or protection of an obligor.

(2) “Instrument” means a negotiable instrument.

The section you are looking at is the rules for payments of checks, promissory notes, and the like. It does not relate to obligations to pay contracts for the sale of goods.