Asked by Tanner Lloyd on May 28, 2024
Verified
Which of the following is assumed by the UCC if an instrument is silent as to the time of payment?
A) That it is a demand instrument
B) That it is a time instrument
C) That it is a void instrument
D) That it is a voidable instrument
E) That it is a nonnegotiable instrument
Demand Instrument
A financial document that requires the payment of money immediately or on demand.
Time Of Payment
The specific period or date by which payment for goods or services received must be made.
Voidable Instrument
A financial document or contract that is valid but may be annulled by one or more of the parties to the contract.
- Understand the implications of conditions and terms on the negotiability of instruments.
Verified Answer
FP
Faheem ParachaJun 01, 2024
Final Answer :
A
Explanation :
If an instrument does not specify a time of payment, the Uniform Commercial Code (UCC) assumes it is a demand instrument, meaning it is payable at the will of the holder or upon demand.
Learning Objectives
- Understand the implications of conditions and terms on the negotiability of instruments.
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