Carlos borrowed $100 from his friend, Juanita. Carlos signed a handwritten note stating, "I promise to pay $100 to the order of Juanita." Under these circumstances, the note is _____.
A) negotiable because it is a simple contract
B) not negotiable because it does not acknowledge the reason for the debt
C) not negotiable because it does not state the time payment is due
D) negotiable because it meets all the requirements for negotiability

Question

Quizplus · Accepted Answer

For an instrument to be negotiable, it must be in writing, be signed by the issuer, contain an unconditional promise or order to pay a fixed amount of money, be payable to order or to bearer, be payable on demand or at a definite time, and not state any other undertaking or instruction by the person promising or ordering to do any act in addition to the payment of money. In the above case, the note signed by Carlos is negotiable because it meets the requirements for negotiability.

Carlos Borrowed $100 from His Friend, Juanita