ExpertHard1 markMultiple Choice
CPA · Question 62 · Area II: Business Law
Which of the following is NOT a requirement for a negotiable instrument under the UCC?
Which of the following is NOT a requirement for a negotiable instrument under the UCC?
Answer options:
A.
Be in writing and signed by the maker or drawer.
B.
Contain an unconditional promise or order to pay a fixed amount of money.
C.
Be payable on a specific date.
D.
Be payable to order or to bearer.
How to approach this question
Requirements: Writing, Signed, Unconditional Promise, Fixed Amount Money, Demand/Definite Time, Order/Bearer.
Full Answer
C.Be payable on a specific date.✓ Correct
To be negotiable, an instrument must be payable on demand OR at a definite time. It does not necessarily require a specific date (e.g., a check is payable on demand).
Common mistakes
Thinking a date is mandatory (checks don't always have future dates).
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