Asked by Karla Rosas on Jun 13, 2024
Verified
All but which one of the following is required of a negotiable instrument?
A) It must be payable only out of a particular fund.
B) It must contain an unconditional promise or order to pay a fixed amount in money.
C) It must be payable on demand or at a definite future date.
D) It must be in writing and signed by the maker or drawer.
Negotiable Instrument
A document in writing that ensures a certain sum of money will be paid, whether immediately upon request or at a predetermined date, with the document specifying the individual responsible for the payment.
Particular Fund
A specific pool of money that is designated for a particular purpose or investment strategy.
Unconditional Promise
A commitment that is absolute and not subject to any conditions or contingencies.
- Understand thoroughly the specific qualifications for a promise or order to be recognized as unconditional and payable at a confirmed time.
Verified Answer
SS
Sagar SinhaJun 15, 2024
Final Answer :
A
Explanation :
A negotiable instrument cannot be limited to being payable only out of a particular fund; it must be an unconditional promise or order to pay.
Learning Objectives
- Understand thoroughly the specific qualifications for a promise or order to be recognized as unconditional and payable at a confirmed time.