Which of the following will destroy negotiability?
A) Making the instrument subject to the terms of another agreement.
B) Signing a check with an "X."
C) Making the instrument payable in Japanese yen.
D) Signing a check in pencil.

Question

Quizplus · Accepted Answer

Making an instrument subject to the terms of another agreement destroys its negotiability because it introduces uncertainty about the terms and conditions under which the instrument is to be paid, violating the requirement for negotiability that the terms of payment be clear and not subject to external conditions.

Which of the Following Will Destroy Negotiability