Asked by Jasmine Nacole on May 12, 2024
Verified
Which of the following is not required for an instrument to be considered negotiable?
A) The instrument must contain an unconditional promise to pay.
B) The instrument must promise to pay a fixed amount of currency.
C) The instrument must be payable at any indefinite future time.
D) The instrument must promise to pay.
E) The instrument must be signed by the maker or drawer.
Indefinite Future Time
A period that has no specified end date.
Unconditional Promise
An unconditional promise is a firm commitment or pledge made by one party to another, without any stipulations or conditions attached.
- Establish the conditions an instrument must fulfill to be regarded as negotiable.
Verified Answer
JB
Johndavid BartonMay 15, 2024
Final Answer :
C
Explanation :
For an instrument to be considered negotiable, it must not be payable at any indefinite future time. Instead, it should specify a definite time for payment or be payable on demand. Option C, which states the instrument must be payable at any indefinite future time, is incorrect because negotiable instruments require a certain degree of predictability regarding their payment.
Learning Objectives
- Establish the conditions an instrument must fulfill to be regarded as negotiable.
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