Bamidele drafted a negotiable instrument and delivered it to Beta Inc in payment of a debt. That instrument contains an acceleration clause. That means that
A) although the person who drafted the instrument intended to make payment in instalments, the payee may be entitled to demand the full amount in one payment.
B) the instrument must be a bill of exchange.
C) the payee must present the instrument to a third party before a certain date.
D) an enforceable obligation was created between the payee and the institution from whom payment is to be made.
E) the instrument will be worth one amount on or before a certain date, and a different amount after that same date.
Correct Answer:
Verified
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