Gail owes $5,000 in unpaid taxes. Using the back of an old t-shirt, she exe?cutes an instrument for $5,000 that otherwise meets the re?quire?ments for negotiability. This instrument is most likely
A) negotiable.
B) nonnegotiable, because an instrument must be on paper.
C) nonnegotiable, because a t-shirt is not sufficiently permanent.
D) nonnegotiable, because the government does not appreciate it.

Question

Quizplus · Accepted Answer

An instrument is negotiable as long as it meets the requirements of negotiability, such as being in writing, signed by the issuer, containing an unconditional promise or order to pay a specific amount of money, and being payable to order or bearer. There is no requirement that the instrument must be on paper, and a t-shirt can be considered a writing. As long as the instrument meets these requirements, it is negotiable.

Gail Owes $5,000 in Unpaid Taxes