Pedro signs an instrument that states it is being executed "as per a contract for the sale of a truckload of almonds dated May 1." This instrument is
A)not necessarily nonnegotiable.
B)not negotiable, because banks cannot easily process commodities.
C)not negotiable, because it includes the specific date of a contract.
D)not negotiable, because it refers to an express contract.

Question

Quizplus · Accepted Answer

The instrument is not necessarily nonnegotiable just because it refers to a contract. The reference to a contract does not automatically make it nonnegotiable unless it explicitly states that the payment is subject to the terms of the contract.

Pedro Signs an Instrument That States It Is Being Executed