Asked by Melissa Johnson on Apr 29, 2024
Verified
A promise to pay in shares of stock satisfies the "sum certain" requirement for a negotiable instrument.
Sum Certain
A specific, fixed amount of money that is clear and unambiguous in a legal agreement or financial transaction.
Shares of Stock
Units of ownership in a corporation, representing a portion of the corporation's capital.
- Gain an understanding of the conditions an instrument must meet to be recognized as negotiable under the UCC.
Verified Answer
BM
Bryan Martinez RodasMay 01, 2024
Final Answer :
False
Explanation :
Negotiable instruments must promise or order payment to be made in a national currency.Although a promise to pay in shares of stock may form a perfectly enforceable contract,the resulting instrument is not a negotiable instrument.
Learning Objectives
- Gain an understanding of the conditions an instrument must meet to be recognized as negotiable under the UCC.
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