Bill's car broke down on a dark, rainy night.Along came Andy in his service station's four-wheel drive truck with tools and supplies in the back.Bill didn't have any credit cards and only $3.25 cash, so Andy told him to write a check or an IOU.Neither Andy nor Bill had any paper, so Bill wrote on the cover of Andy's lunchbox: "If my car is fixed right by Andy Walcott, I will pay him $150.(Signed) Bill Boyd." Andy indorses the note and takes it to a commercial factor for negotiation.The factor refuses, saying it is non-negotiable because it:

Question

Quizplus · Accepted Answer

The note is conditional on satisfactory repair of the car, which means the payment is contingent on the quality of service provided by Andy. This makes the note non-negotiable because the factor cannot ensure payment from Bill regardless of whether the car is repaired correctly or not. The fact that it is written on a lunchbox or mentions the existence of a contract to repair the car is irrelevant to its negotiability.

Bill's Car Broke Down on a Dark, Rainy Night