Barry draws a check payable to "Cash" and presents it to Dollars & Sense store for payment. This instrument is
A)a bearer instrument.
B)an order instrument.
C)valid but nonnegotiable.
D)void.Fact Pattern 14-2 LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas by LNG to Midstates.LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days.Midstates Utility signs and dates the draft.

Question

Barry draws a check payable to "Cash" and presents it to Dollars & Sense store for payment. This instrument is​
A)a bearer instrument.
B)an order instrument.
C)valid but nonnegotiable.
D)void.Fact Pattern 14-2 LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas by LNG to Midstates.LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days.Midstates Utility signs and dates the draft.

Quizplus · Accepted Answer

A check payable to "Cash" is a bearer instrument because it can be negotiated by delivery alone without endorsement.

Barry Draws a Check Payable to "Cash" and Presents It