EZ Credit Company signs an instrument payable to the order of Fraser that states,"The maker of this note at the date of maturity,May 1,2013,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, as the extension clause allows the maker to extend the payment time, making it uncertain.

EZ Credit Company Signs an Instrument Payable to the Order