Juice Company signs an instrument that states it is being executed "as per a contract for the sale of a case of oranges dated May 1." This instrument is
A)negotiable.
B)nonnegotiable, because banks cannot easily process commodities.
C)nonnegotiable, because it includes the specific date of a contract.
D)nonnegotiable, because it refers to an express contract.

Question

Quizplus · Accepted Answer

The instrument is negotiable because the reference to a contract does not affect its negotiability. Negotiability is concerned with the instrument's terms being fixed and unconditional, not whether it mentions or is related to another contract.

Juice Company Signs an Instrument That States It Is Being