On May 1, Doug signs a check that is payable to the order of Excel Credit Corporation and that is dated July 1. This check is
A) negotiable.
B) nonnegotiable, because it is payable to Excel Credit Card Corporation.
C) nonnegotiable, because it is postdated.
D) nonnegotiable, because it is signed by Doug.

Question

Quizplus · Accepted Answer

The check is negotiable because it meets the requirements of being payable to a specific payee (Excel Credit Corporation) and containing an unconditional promise to pay a specific amount of money. The fact that it is postdated does not affect its negotiability.

On May 1, Doug Signs a Check That Is Payable