Which of the following is nonnegotiable?
A)A check written "Pay James Watson."
B)A note written "I promise to pay James Watson."
C)A note written "I promise to pay James Watson or bearer."
D)A draft payable "to the order of bearer."

Question

Quizplus · Accepted Answer

The words "to the order of" or "to bearer" show that the drawer of a draft,or the maker of a note,intends to issue a negotiable instrument.The drawer or maker is not restricting payment of the instrument to just James Watson but is willing to pay someone else designated by James Watson.This is the essence of negotiability.

Which of the Following Is Nonnegotiable