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

Question

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

Quizplus · Accepted Answer

The instrument is negotiable because it meets all the requirements of negotiability, including being payable to a specific party (Pay-Out Loans, Inc.), containing an unconditional promise to pay a fixed amount, and indicating the date on or before which the payment is due. The fact that it includes the phrase "on or before" does not affect its negotiability, as it simply provides a range of possible payment dates.

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