Asked by Kiana Moore on May 20, 2024
Verified
Considering only the issue of terminology, not the issue of handwriting or whether Sophie properly performed, which of the following is true regarding whether the language "I, Reza Salehi, owe Sophie Smith $50" is insufficient to establish elements required for a negotiable instrument?
A) The language is sufficient because it acknowledges the debt, and that is the only required standard.
B) The language is insufficient because it only acknowledges the debt and is not a promise to pay.
C) The language is sufficient only because the instrument is in an amount under $500.
D) The language is sufficient because it acknowledges the debt and is also a promise to pay.
E) The language is sufficient because it acknowledges the debt and is unconditional.
Negotiable Instrument
A financial document, such as a check or promissory note, that contains an unconditional promise or order to pay a specified amount of money, easily transferable from one party to another.
Acknowledges The Debt
The act of a debtor formally admitting the existence or validity of a debt owed to a creditor.
Promise To Pay
A legal agreement where one party agrees to repay a debt or fulfill an obligation to another party.
- Understand the prerequisites for an instrument's negotiability.
Verified Answer
Learning Objectives
- Understand the prerequisites for an instrument's negotiability.
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