Considering only the issue of terminology, not the issue of handwriting or whether Sophie properly performed, which of the following is true regarding whether the language "I, Reza Salehi, owe Sophie Smith $50" is insufficient to establish elements required for a negotiable instrument?
A) The language is sufficient because it acknowledges the debt, and that is the only required standard.
B) The language is insufficient because it only acknowledges the debt and is not a promise to pay.
C) The language is sufficient only because the instrument is in an amount under $500.
D) The language is sufficient because it acknowledges the debt and is also a promise to pay.
E) The language is sufficient because it acknowledges the debt and is unconditional.

Question

Quizplus · Accepted Answer

The language "I, Reza Salehi, owe Sophie Smith $50" is insufficient to establish the elements required for a negotiable instrument because it merely acknowledges a debt and does not explicitly include a promise to pay, which is a necessary element for a document to be considered a negotiable instrument.

Considering Only the Issue of Terminology, Not the Issue of Handwriting