Builders Exchange, Inc., issues an instrument in favor of Custom Construction Company. For the instrument to be negotiable, it must
A) be a conditional promise or order to pay.
B) be payable on demand or at a specific time.
C) be signed by the payee.
D) recite the consideration given in exchange for it.

Question

Builders Exchange, Inc., issues an instrument in favor of Custom Construction Company. For the instrument to be negotiable, it must
A) ​be a conditional promise or order to pay.
B) ​be payable on demand or at a specific time.
C) ​be signed by the payee.
D) ​recite the consideration given in exchange for it.

Quizplus · Accepted Answer

According to the requirements for negotiability, an instrument must be payable on demand or at a specific time. The other options are not necessary for the instrument to be negotiable.