Asked by Dustin Godtfring on Jun 09, 2024
Verified
Which of the following will destroy negotiability?
A) Making the instrument subject to the terms of another agreement.
B) Making the instrument payable in Japanese yen.
C) Signing a check in pencil.
D) Signing a check with an "X."
Negotiability
The characteristic of a document, typically a financial instrument, that allows it to be transferred or assigned from one party to another as a form of payment or investment.
Japanese Yen
The official currency of Japan, represented by the symbol ¥.
Subject to
Conditioned upon or dependent on a certain event or provision, often indicating the existence of specific limitations or requirements.
- Assess the impact of conditions, references to other agreements, and undefined payment times on the negotiability of instruments.
Verified Answer
AS
andrei santosJun 14, 2024
Final Answer :
A
Explanation :
Making the instrument subject to the terms of another agreement destroys negotiability because it introduces uncertainty about the terms and conditions under which the instrument is to be paid, violating the requirement for a negotiable instrument to have a fixed and certain obligation.
Learning Objectives
- Assess the impact of conditions, references to other agreements, and undefined payment times on the negotiability of instruments.