Roger,a certified lawyer,borrows money from Jax to start a business.He executes a promissory note stating that he will repay the money within the next five years if he inherits any money from his parents.Which of the following is true of the negotiability of the promissory note executed by Roger?
A) It is negotiable for the next five years.
B) It is invalid.
C) It is a nonnegotiable instrument.
D) It is a negotiable instrument if Jax accepts it.

Question

Quizplus · Accepted Answer

The promissory note executed by Roger is non-negotiable because it is conditional upon him inheriting money from his parents. Promissory notes that are conditional in nature are not considered negotiable instruments because they depend on a future event or contingency.

Roger,a Certified Lawyer,borrows Money from Jax to Start a Business