Diners Restaurant issues an instrument in favor of Eatery Supplies, Inc. For the instrument to be negotiable, it need not
A) be an unconditional promise or order to pay.
B) be payable on demand or at a specific time.
C) be signed by Diner's Restaurant.
D) recite the consideration given in exchange for a promise to pay.

Question

Quizplus · Accepted Answer

While various requirements need to be met for an instrument to be negotiable, reciting the consideration given in exchange for a promise to pay is not one of them. The other three requirements mentioned in the options are necessary for an instrument to be negotiable. Therefore, option D is the correct answer.

Diners Restaurant Issues an Instrument in Favor of Eatery Supplies