Which of the following statements is true of a negotiable instrument?
A) It should be signed by the payee.
B) It can be either written or oral.
C) It should not require any undertaking other than the payment of money.
D) It need not state a fixed amount of money and can include a service that needs to be rendered.

Question

Quizplus · Accepted Answer

A negotiable instrument should not require any undertaking other than the payment of money. It should be unconditional and freely transferable from one person to another. Thus, option C is the correct statement. Options A and B are incorrect because a negotiable instrument should be signed by the maker or drawer, not the payee, and it should be in writing. Option D is incorrect because a negotiable instrument should state a fixed amount of money, and it cannot include a service that needs to be rendered.

Which of the Following Statements Is True of a Negotiable