Direct Connect Company orders a quantity of wire from Electric Supply Inc. To finance the purchase, Direct signs a note that includes a reference to the parties' contract, a payment schedule, and a security agreement. This note is
A)negotiable.
B)nonnegotiable, because it refers to the parties' contract.
C)nonnegotiable, because it refers to a payment schedule.
D)nonnegotiable, because it refers to a security agreement.

Question

Quizplus · Accepted Answer

The note is negotiable because it meets the requirements of a negotiable instrument, which can include references to a contract, payment schedule, and security agreement without affecting its negotiability.

Direct Connect Company Orders a Quantity of Wire from Electric