An instrument is negotiable if it satisfies six standards.Which of the following is a standard of negotiability?
A) The instrument can be oral provided there is proof beyond a reasonable doubt.
B) The instrument must be payable on demand.
C) The instrument must be conditional.
D) The instrument must state a definite sum of money.

Question

Quizplus · Accepted Answer

One of the standards of negotiability is that the instrument must state a definite sum of money. The other options are not standards of negotiability - an instrument must be in writing, signed, unconditional, contain an order or promise to pay, and be payable on demand or at a definite time.

An Instrument Is Negotiable If It Satisfies Six Standards