In order to be negotiable,a promissory note must contain an unconditional ________.
A) acknowledgement of debt with or without a promise to pay
B) order to a drawee to pay a payee
C) written promise to pay
D) acknowledgement of debt with a conditional promise to pay

Question

Quizplus · Accepted Answer

A promissory note must contain a written promise to pay a specific amount of money to a specific payee or bearer. It cannot contain conditions or orders to a third party like a drawee. The acknowledgement of debt is also necessary for a promissory note, but it must be unconditional. Therefore, option A and D are not the correct choices. Option B describes a type of negotiable instrument called a bill of exchange, not a promissory note.

In Order to Be Negotiable,a Promissory Note Must Contain an Unconditional