A note in which the maker states, "I promise to pay to the order of Oliver $600 or a six-string guitar" is:
A) not negotiable because it contains a conditional promise.
B) negotiable for payment of the guitar only.
C) negotiable for payment only if Oliver is the holder of the instrument.
D) not negotiable because it is not payable for money alone.

Question

Quizplus · Accepted Answer

The amount specified in the instrument must be payable in money. "Money" is a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations. If the person obligated to pay off an instrument can do something other than pay money, the instrument is not negotiable. The note in the above example is not negotiable because it is not payable for money alone.

A Note in Which the Maker States, "I Promise to Pay