On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is
A) negotiable.
B) not negotiable, because soda is not a medium of exchange authorized or adopted by a government as currency.
C) not negotiable, because it does not identify a specific soda.
D) not negotiable, because it does not recite any consideration.

Question

On behalf of Bubbly Drinks Company, Calvin signs an instrument in which he promises to deliver 100 cases of soda as payment to Dispatch & Delivery, Inc., on April 1. This instrument is
A) ​negotiable.
B) ​not negotiable, because soda is not a medium of exchange authorized or adopted by a government as currency.
C) ​not negotiable, because it does not identify a specific soda.
D) ​not negotiable, because it does not recite any consideration.

Quizplus · Accepted Answer

The instrument is not negotiable because it involves the delivery of goods (soda) rather than a medium of exchange recognized as currency by a government. Negotiable instruments typically involve the payment of money.

On Behalf of Bubbly Drinks Company, Calvin Signs an Instrument