Commercial paper differs from ordinary contracts because of:
A) presumption of consideration and assignability.
B) ability to negotiate on the commercial paper.
C) the validity of the commercial paper.
D) ability to negotiate on the contract.

Question

Quizplus · Accepted Answer

Commercial paper differs from ordinary contracts because there is a presumption of consideration and assignability. This means that commercial paper is presumed to have value and can often be sold or transferred to another party. While ordinary contracts may also have consideration and be assignable, it is not automatically presumed, and the parties may need to prove it. Negotiability (B) and validity (C) are also key features of commercial paper, but they do not necessarily distinguish it from ordinary contracts. Negotiation (D) is a feature of both commercial paper and contracts.

Commercial Paper Differs from Ordinary Contracts Because Of