Question

29. Which of the following instruments is nonnegotiable? A. An instrument stating "I promise to pay to the order of Carol Reed $40, Jerry Jacobs." B. An instrument stating that it was given in payment of the previous month's rent. C. An instrument stating that it was given in payment of the purchase price of goods. D. An instrument stating "I promise to pay to the order of Meg Raven, at my option, $100 or five baskets of oranges, Dan Gilbert."

Answer 1

Ans: D. An instrurnent stating "I promise to pay to the order of Meg Raven. at my option, $100 or five baskets of oranges. Dan Gilbert." is Correct Answer

Explanation:

The following instruments is nonnegotiable

An Instrument in money only Negotiable, With clear content of An order or Promise to pay .

The word "An Option" leads to Nonnegotiable as Condition to pay does not exist