Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is
A) negotiable.
B) nonnegotiable, because payment can be made only out of a particular source.
C) nonnegotiable, because it states an express condition to payment.
D) nonnegotiable, because the reasons for the note are not clear on its face.

Question

Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is
A) ​negotiable.
B) ​nonnegotiable, because payment can be made only out of a particular source.
C) ​nonnegotiable, because it states an express condition to payment.
D) ​nonnegotiable, because the reasons for the note are not clear on its face.

Quizplus · Accepted Answer

The Answer of Bart, the owner of Clear Cut Corporation, signs an instrument that includes the phrase "payment for this note will be made from the proceeds of next year's timber sale." This instrument is
A) ​negotiable.
B) ​nonnegotiable, because payment can be made only out of a particular source.
C) ​nonnegotiable, because it states an express condition to payment.
D) ​nonnegotiable, because the reasons for the note are not clear on its face.

Bart, the Owner of Clear Cut Corporation, Signs an Instrument