Asked by Li-Yun Chang on May 20, 2024
Verified
A definite time required for negotiability would NOT be satisfied in which instance?
A) Payable on or before January 2, 2021.
B) Payable one year from the completion of the building
C) Payable one week after demand is made.
D) Payable on June 15, 2021 or, if the building is not complete on that date, one year from that date.
Definite Time
A term used to denote a specific, clear, and unambiguous point or period in time agreed upon in various contexts, such as contracts or scheduling.
Completion of Building
The final stage in the construction process when a building is declared finished according to the set standards or specifications, often marked by a certificate of occupancy.
Payable on Demand
A payment term indicating that the amount is due and must be paid immediately or whenever the holder requests it.
- Acquire knowledge of the specific conditions for a promise or order to be deemed unconditional and due at a certain time.
Verified Answer
YJ
YUYANG JIANGMay 22, 2024
Final Answer :
B
Explanation :
For a financial instrument to be negotiable, it must have a fixed date or be payable upon demand. Option B, "Payable one year from the completion of the building," does not satisfy the requirement for a definite time because the completion date of the building is uncertain.
Learning Objectives
- Acquire knowledge of the specific conditions for a promise or order to be deemed unconditional and due at a certain time.