On behalf of Bubble Tea Company, Corey signs an instrument in which she promises to deliver 100 cases of tea as payment to Deli Inc. on April 1. This instrument is
A)negotiable.
B)nonnegotiable, because tea is not a medium of exchange authorized or adopted by a government as currency.
C)nonnegotiable, because it does not indicate a specific brand of tea.
D)nonnegotiable, because it does not recite any consideration.

Question

Quizplus · Accepted Answer

Negotiable instruments must involve a promise or order to pay money, not goods or services. Since tea is not a government-authorized currency, the instrument is nonnegotiable.

On Behalf of Bubble Tea Company, Corey Signs an Instrument