Asked by Meghan Benton on Jun 07, 2024
Verified
Under the UCC which of the following statements is sufficient to make a promise or order to pay conditional?
A) "I promise to pay from the corporate account."
B) "I promise to pay as per the contract for the sale of goods between the parties."
C) "I promise to pay because I owe the money."
D) "I promise to pay if the following occurs."
E) "Borrower may pay without penalty all or a portion of the amount owed earlier than it is due."
Promise To Pay
A written agreement in which one party pledges to pay a specified sum to another party under defined conditions.
UCC
The United States' commercial transactions are all managed under the extensive laws encompassed by the Uniform Commercial Code.
Corporate Account
A type of financial account specifically designed for businesses, enabling them to manage expenses, assets, and transactions under the corporate name.
- Comprehend the effects of stipulations and clauses on the transferability of instruments.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
D
Explanation :
A promise or order to pay is made conditional under the UCC if it explicitly states a condition to payment. Choice D, "I promise to pay if the following occurs," clearly introduces a condition that must be met for the obligation to pay to arise, making it conditional.
Learning Objectives
- Comprehend the effects of stipulations and clauses on the transferability of instruments.