A negotiable instrument is
A) valuable documents that can be pledged as security to another.
B) a written promise by a party given in exchange for a promise of another.
C) an instrument that is used in negotiations.
D) an instrument that can be given in exchange for a promise of another.
E) a written contract containing a promise, express or implied, to pay a specific sum of money to the order of a designated person or to bearer.

Question

Quizplus · Accepted Answer

A negotiable instrument is a written contract containing a promise, express or implied, to pay a specific sum of money to the order of a designated person or to bearer. It is a document that can be transferred from one person to another by delivery or endorsement, and the transferee acquires all the rights and remedies of the transferor. Examples of negotiable instruments include checks, promissory notes, and bills of exchange.

A Negotiable Instrument Is