An item of commercial paper containing the key words of negotiability, such as "pay to the order of," or their equivalent, is a(n):
A) price quotation.
B) grade instrument.
C) order instrument.
D) bill of lading.

Question

Quizplus · Accepted Answer

An order instrument is a type of negotiable instrument that includes the words "pay to the order of" or their equivalent, making it transferable by endorsement and delivery. Examples of order instruments include checks and promissory notes. A bill of lading is a document used in shipping and transportation, and a price quotation does not contain negotiability language. A grade instrument is not a recognized term in the context of negotiable instruments.

An Item of Commercial Paper Containing the Key Words of Negotiability