Which of the following is true regarding the effect on negotiability of John's determination that Paula did a poor job mowing the yard?
A) Paula's performance prevents the instruments from being negotiable only if John meets the burden of proof of establishing to the judge by a preponderance of the evidence that Paula did a poor job mowing the yard.
B) Paula's performance prevents the instruments from being negotiable only if Paula meets the burden of proof of establishing to the judge by a preponderance of the evidence that she did an acceptable job mowing the yard.
C) Paula's performance prevents the instruments from being negotiable only if John meets the burden of proof of establishing to the judge by a preponderance of the evidence that Paula did a poor job mowing the yard, and if Paula signed and provided to John a document agreeing that the instrument would lack negotiability unless she properly performed.
D) Paula's performance prevents the instruments from being negotiable only if Paula meets the burden of proof of establishing to the judge by a preponderance of the evidence that she did an acceptable job mowing the yard and that she did not sign any document agreeing that the instrument would lack negotiability upon John's objection.
E) Manner of performance is not one of the listed elements for a finding of negotiability.

Question

Quizplus · Accepted Answer

To be negotiable (which is not the same as enforceable) under UCC 3-104(a), the instrument must satisfy seven requirements. It must:
1. Be a written document.
2. Be signed by the creator of the instrument.
3. Have an unconditional promise or order to pay.4. Specify a fixed sum of money.5. Specify payment either on demand or at a fixed future time.6. Contain the words to the order of or words indicating it is a bearer instrument.7. Contain no additional promises.

Which of the Following Is True Regarding the Effect on Negotiability