Asked by Jennifer Guillen on May 12, 2024
Verified
Which of the following is an incorrect statement regarding the requirements for an instrument to be negotiable?
A) The instrument must be a written document.
B) The instrument must be payable at a fixed future time,not on demand.
C) The instrument must have an unconditional promise or order to pay.
D) The amount to be paid in the instrument must be a sum certain in money.
E) The document must contain either the words of negotiability-"to the order of"-or words indicating that it is a bearer instrument.
Fixed Future Time
A specific date or time in the future that is agreed upon for the completion of a transaction or event.
Words of Negotiability
Specific phrases or terms stipulated in a financial instrument that allow it to be transferred or negotiated from one party to another.
- Comprehend the criteria that define an instrument's negotiability according to the Uniform Commercial Code.
Verified Answer
AR
Ahmed RagehMay 15, 2024
Final Answer :
B
Explanation :
According to Section 3-104(a)of the Uniform Commercial Code,in order for an instrument to be negotiable,payment is to be made either on demand or at a fixed future time (a time certain).
Learning Objectives
- Comprehend the criteria that define an instrument's negotiability according to the Uniform Commercial Code.