Which of the following statements will cause an instrument to be nonnegotiable?
A)"Payment is subject to the terms of a mortgage dated August 30,2005."
B)"Payment is secured by a mortgage dated August 30,2005."
C)"Payment is in consideration of two months' rent."
D)"Payment to be made 30 days after date,for a note dated August 30,2005."

Question

Quizplus · Accepted Answer

To be negotiable,an instrument must be written so that a person can tell from reading the instrument alone what the obligations of the parties are.Thus,if a note contains the statement "Payment is subject to the terms of a mortgage dated November 20,2010," it is not negotiable.

Which of the Following Statements Will Cause an Instrument to Be