Asked by Aamir Anwar on May 28, 2024
Verified
An instrument "payable on demand" is one that ________.
A) states that it is payable on demand or at sight,or otherwise indicates that it is payable at the will of the holder
B) does not state any time of payment
C) is payable within ten days after presentment
D) states that it is payable on demand or at sight,or otherwise indicates that it is payable at the will of the holder; or does not state any time of payment
E) states that it is payable on demand or at sight,or otherwise indicates that it is payable at the will of the holder; does not state any time of payment; or is payable within ten days after presentment
Payable on Demand
A financial term indicating that a debt or other financial obligation is due for payment immediately or whenever the creditor requests it.
Time of Payment
The specific period or date by which payment for goods or services is due or expected.
- Distinguish between demand instruments and time instruments and understand their respective implications.
Verified Answer
DW
Dylan WalterJun 01, 2024
Final Answer :
D
Explanation :
According to Uniform Commercial Code Section 3-108(a),an instrument that is "payable on demand" is one that "(i)states that it is payable on demand or at sight,or otherwise indicates that it is payable at the will of the holder; or (ii)does not state any time of payment."
Learning Objectives
- Distinguish between demand instruments and time instruments and understand their respective implications.
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