[Yard Mowing] Sophie agreed to mow Reza's yard once a week for $50 per week throughout the summer. Sophie, however, was having trouble getting her money from Reza. On one occasion, he in handwriting gave her an IOU saying "I, Reza Salehi, owe Sophie Smith $50." A couple of weeks later, Reza did not have the money to pay Sophie what he owed her, and he handwrote the following on a piece of paper and gave it to her: "I, Reza Salehi, promise to pay Sophie Smith or to bearer, the sum of $100 on Monday, July 22, 2016." Sophie quit mowing Reza's yard; and, disgusted with Reza, Sophie assigned both documents to Vince. When Vince presented the documents to Reza, Reza refused to pay on the basis that after inspecting the yard, he decided that Sophie was doing a poor job. Vince told him the documents constituted negotiable instruments, but Reza pointed out that he had not signed the documents with his signature at the end.
-Which of the following is true regarding the effect on negotiability of Reza's determination that Sophie did a poor job mowing the yard?
A) Sophie's performance prevents the instruments from being negotiable only if Reza meets the burden of proof of establishing to the judge by a preponderance of the evidence that Sophie did a poor job mowing the yard.
B) Sophie's performance prevents the instruments from being negotiable only if Sophie meets the burden of proof of establishing to the judge by a preponderance of the evidence that she did an acceptable job mowing the yard.
C) Sophie's performance prevents the instruments from being negotiable only if Reza meets the burden of proof of establishing to the judge by a preponderance of the evidence that Sophie did a poor job mowing the yard, and if Sophie signed and provided to Reza a document agreeing that the instrument would lack negotiability unless she properly performed.
D) Sophie's performance prevents the instruments from being negotiable only if Sophie meets the burden of proof of establishing to the judge by a preponderance of the evidence that she did an acceptable job mowing the yard and that she did not sign any document agreeing that the instrument would lack negotiability upon Reza's objection.
E) Manner of performance is not one of the listed elements for a finding of negotiability.
Correct Answer:
Verified
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