Asked by Karla Reyes on May 08, 2024
Verified
A contract that is personal or nonassignable cannot be classified as commercial paper.
Nonassignable
Refers to a contract or rights within a contract that cannot be transferred or delegated to another party.
Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.
- Distinguish between negotiable and non-negotiable instruments.
Verified Answer
JM
Jeanna MerilienMay 14, 2024
Final Answer :
True
Explanation :
Commercial paper refers to unsecured, short-term debt instruments issued by corporations, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities. It is meant to be easily transferable. A contract that is personal or nonassignable does not meet these criteria, as its terms are specific to the parties involved and cannot be transferred to others.
Learning Objectives
- Distinguish between negotiable and non-negotiable instruments.
Related questions
When an Instrument Fails to Meet the Technical Requirements Necessary ...
If an Instrument Fails to Qualify as a Negotiable Instrument ...
If an Instrument Fails to Qualify as a Negotiable Instrument ...
Which of the Following Statements Does NOT Affect an Instrument's ...
Alice Writes a Check Pay to the Order of Caleb ...