Nigel, a resident of North Carolina, sent Claude, a resident of Lyon, France, a note that read, "Ninety days after date, I promise to pay to the order of Claude €5,000 (signed) Nigel." The note is:
A) payable in an equivalent dollar amount.
B) not payable in the foreign money specified.
C) payable on demand in the foreign money specified.
D) payable at sight in an equivalent dollar amount.

Question

Quizplus · Accepted Answer

The amount specified in the instrument must be payable in money. In the above case, Nigel must pay money to Claude in an equivalent dollar amount or in the foreign money specified on the date of payment. "Money" is a medium of exchange authorized by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization. Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent dollar amount.

Nigel, a Resident of North Carolina, Sent Claude, a Resident