Wen writes an instrument that states it is "payable to X." The instrument is
A)negotiable.
B)nonnegotiable, because it does not state that it is payable to order.
C)nonnegotiable, because it is payable to a nonexistent person.
D)nonnegotiable, because it cannot be transferred by indorsement.

Question

Quizplus · Accepted Answer

An instrument that states it is "payable to X" is considered negotiable because it specifies a payee, which is one of the requirements for negotiability under the Uniform Commercial Code (UCC). The fact that it does not explicitly state "payable to order" does not make it nonnegotiable, nor does the potential nonexistence of the person or the ability to transfer by endorsement affect its negotiability in this context.

Wen Writes an Instrument That States It Is "Payable to X