Asked by Britney Hicks on Jun 07, 2024

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Verified

In order for an instrument to be negotiable,the promise or order to pay must be ________ and not ________.

A) general; expressed
B) specific; implied
C) general; implied
D) specific; expressed
E) equivocal; affirmative

Negotiable

Capable of being transferred from one person to another through endorsement or delivery, often used in the context of negotiable instruments like checks.

Promise

A promise or guarantee to take a specific action or ensure a certain outcome.

Order To Pay

A directive, usually legal or financial in nature, mandating that a certain amount of money must be paid.

  • Discern the obligatory requirements and scenarios for instruments to be negotiable.
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Verified Answer

DB
Daniel BilonicJun 08, 2024
Final Answer :
B
Explanation :
According to Uniform Commercial Code Section 3-103(a)(9),in order for an instrument to be negotiable,it must contain a promise or order to pay that is specific and not implied.The language must be affirmative in nature.For example,simply acknowledging a debt does not create language for payment; therefore,a common IOU is not a promise or an order to pay and thus cannot be a negotiable instrument.