Which of the following is true regarding Jack's claim that he had a negotiable instrument and could collect from Molly?
A) Jack is correct.
B) The agreement is not negotiable because it does not contain words of negotiability.
C) The agreement is not negotiable because the book was the wrong book.
D) The agreement is not negotiable because Jack was not a party to the original contract.
E) The agreement is not negotiable both because the amount at issue is insufficient to create a negotiable instrument.

Question

Quizplus · Accepted Answer

For an instrument to be negotiable, the instrument must indicate it was created for the purpose of being transferred. How can the maker or drawer indicate this purpose? By writing the phrase to the order of or similar words near the payee's name, such as "Pay to the order of Ichiro Endo" or "Pay to Ichiro Endo on his order."

Which of the Following Is True Regarding Jack's Claim That