EZ Credit Company signs an instrument payable to the order of Flem that states, "The maker of this note at the date of maturity, May 1, 2011, can extend the time of pay?ment, but for no more than a rea?sonable time." This instrument is
A) negotiable.
B) nonnegotiable, because it includes an extension clause.
C) nonnegotiable, because it is not payable within a definite time.
D) nonnegotiable, because it is payable to a specific payee.

Question

Quizplus · Accepted Answer

The instrument is nonnegotiable because it is not payable within a definite time due to the extension clause that allows the maker to extend the payment time, making the maturity date uncertain.

EZ Credit Company Signs an Instrument Payable to the Order