Asked by Karla Reyes on May 08, 2024

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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.
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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.