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Which of the Following Is True If an Instrument Fails

Question 9

Multiple Choice

Which of the following is true if an instrument fails to qualify as a negotiable instrument?


A) The instrument by definition fails to be a good contract.
B) Failure to qualify as a negotiable instrument does not mean the instrument fails to be a good contract.
C) The instrument by definition is a good contract.
D) The instrument by definition is a good contract only if it is made out in an amount less than $1,000.
E) The instrument by definition is a good contract only if it is made out in an amount more than $1,000.

Correct Answer:

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