George's Wholesale agrees to purchase 1,000 pounds of bananas from Chickadee Exports at 39 cents per pound.George's does not have the money for the bananas now,but promises to pay in two months.Chickadee Exports wants to make the sale,but is worried about waiting for the payment,knowing the bananas are not "appealing" collateral. So,Chickadee prepares an instrument claiming George's $400 sorting machine as collateral.George's never signs the agreement,but accepts the shipment of bananas.This is an example of a:

Question

Quizplus · Accepted Answer

A security interest requires a signed security agreement or possession of the collateral, neither of which is present here.

George's Wholesale Agrees to Purchase 1,000 Pounds of Bananas from Chickadee