What is the effect of Molly agreeing to give Sam a DVD in return for the book?
A) Molly and Sam have an enforceable contract, and Molly has also satisfied the negotiability condition regarding the form of payment.
B) Molly and Sam have an enforceable contract, but the agreement fails to satisfy the negotiability requirement that payment be in a sum certain in money.
C) Because payment is not in a sum certain for money, Molly and Sam do not have an enforceable contract nor does the agreement satisfy the negotiability requirement that payment be in a sum certain in money.
D) Because payment is not in a sum certain for money, Molly and Sam do not have an enforceable contract, but the requirement of negotiability regarding the form of payment has been satisfied.
E) Unless Sam acknowledges in writing that the fair market value of the DVD is equivalent to the value of the book he provided to Molly, there is no enforceable contract nor is the agreement negotiable.

Question

Quizplus · Accepted Answer

Negotiable instruments must promise or order that payment be made in a national currency [UCC 3-104(a)]. For example, U.S. dollars, English pounds, Euros, and Japanese yen all satisfy the currency requirement. While promises to pay in apples or gold or stock may form a perfectly enforceable contract, these are not currencies and the resulting instrument is not a negotiable instrument.

What Is the Effect of Molly Agreeing to Give Sam