Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is likely
A) negotiable.
B) nonnegotiable, because an instrument must be on paper.
C) nonnegotiable, because a t-shirt is not sufficiently permanent.
D) nonnegotiable, because the government does not appreciate it.

Question

Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she executes an instrument for $5,000 that otherwise meets the requirements for negotiability. This instrument is likely
A) ​negotiable.
B) ​nonnegotiable, because an instrument must be on paper.
C) ​nonnegotiable, because a t-shirt is not sufficiently permanent.
D) ​nonnegotiable, because the government does not appreciate it.

Quizplus · Accepted Answer

As long as the instrument meets the requirements for negotiability (such as being in writing, signed by the maker, containing a promise to pay a certain amount, etc.), it is negotiable regardless of the medium used. The fact that Gail used the back of a t-shirt does not affect the negotiability of the instrument.

Gail Owes $5,000 in Unpaid Taxes