Alvin signs a promissory note payable to the order of Borrow & Spend Loan Company. The note states that it is payable "with interest at the legal rate." This note is
A)negotiable.
B)notnegotiable,because it does not specify a rate of interest.
C)notnegotiable,because it is a promissory note.

Question

Quizplus · Accepted Answer

The promissory note is negotiable because it meets the requirements of negotiability, such as being in writing, containing an unconditional promise to pay a certain amount, and payable to order. The fact that it specifies interest at the legal rate is sufficient, as the legal rate of interest varies depending on the jurisdiction.

Alvin Signs a Promissory Note Payable to the Order of Borrow