Kelly signs an instrument in favor of Len that states it is "subject to a cer?tain agreement between Kelly and Mona." This instru?ment is
A)negotiable.
B)nonnegotiable,because it is made subject to a separate agreement.
C)nonnegotiable,because it refers to a separate agreement.
D)nonnegotiable,because Kelly and Mona are not the same persons.

Question

Quizplus · Accepted Answer

The instrument is nonnegotiable because it is made subject to a separate agreement. The fact that it refers to another agreement does not necessarily make it nonnegotiable, but the condition of being subject to another agreement does. The identity of the parties is not relevant to the negotiability of an instrument.

Kelly Signs an Instrument in Favor of Len That States