To finance the purchase of an electric guitar and amplifier from Leon's Guitars,Milo signs an instrument promising to pay to "National Lenders" $1,800 with interest in installments with the final payment due August 15,2016. To be negotiable,this instrument must include on its face
A)any conditions on the sale of the goods.
B)any conditions to the disbursement of the funds.
C)any conditions to the repayment of the loan.
D)no conditions.

Question

Quizplus · Accepted Answer

For an instrument to be negotiable, it must not include any conditions or limitations. The only requirements are that it be in writing, signed by the maker, contain a promise or order to pay a specific amount of money, and be payable on demand or at a definite time. Therefore, no conditions should be included on the face of the instrument for it to be negotiable.

To Finance the Purchase of an Electric Guitar and Amplifier