Asked by
Brooke Galletti
on Nov 27, 2024
Verified
On behalf of Bubble Tea Company, Corey signs an instrument in which she promises to deliver 100 cases of tea as payment to Deli Inc. on April 1. This instrument is
A) negotiable.
B) nonnegotiable, because tea is not a medium of exchange authorized or adopted by a government as currency.
C) nonnegotiable, because it does not indicate a specific brand of tea.
D) nonnegotiable, because it does not recite any consideration.
Medium of Exchange
An intermediary instrument used to facilitate the sale, purchase, or trade of goods and services between parties.
Negotiable
Capable of being discussed in order to reach an agreement or capable of being transferred by endorsement or delivery.
Specific Brand
A particular brand that is identified or specified, often distinguished by its unique name, logo, and product attributes.
- Acknowledge the implications of choosing specific payment channels and counterparties on the negotiability of instruments.
Verified Answer
BF
Learning Objectives
- Acknowledge the implications of choosing specific payment channels and counterparties on the negotiability of instruments.