Asked by Janice Walker on Apr 24, 2024
Which of the following is true regarding the instrument signed by Caileen promising to pay William a 10% commission if he sold her car?
A) The instrument is negotiable.
B) The instrument is not negotiable only for the reason that it is based on a condition.
C) The instrument is not negotiable only for the reason that Caileen is not a merchant.
D) The instrument is not negotiable only for the reason that it is not for a sum certain.
E) The instrument is not negotiable because it is based on a condition and also because it is not for a sum certain.
Commission
A fee or percentage of a transaction value paid to an agent or company for facilitating a service, such as a sale or real estate transaction.
Negotiable
Capable of being discussed and modified in a transaction or agreement.
- Clarify the properties affecting the negotiability of a financial instrument.
- Understand the concept of negotiability concerning conditional promises and fixed sums.
Learning Objectives
- Clarify the properties affecting the negotiability of a financial instrument.
- Understand the concept of negotiability concerning conditional promises and fixed sums.
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