Oren signs an instrument payable to the order of Pay-Out Loans Inc. "on or before" June 15. This instrument is
A)negotiable.
B)nonnegotiable, because the maker can move up the payment date.
C)nonnegotiable, because moving up the payment date is optional.
D)nonnegotiable, because the exact payment date cannot be determined from the face of the instrument.

Question

Quizplus · Accepted Answer

The instrument is negotiable because it contains an unconditional promise to pay a fixed amount of money on or before a definite time, which complies with the requirements for negotiability under the Uniform Commercial Code (UCC). The option to pay earlier does not affect its negotiability.

Oren Signs an Instrument Payable to the Order of Pay-Out