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Sid signs a promissory note payable to Tony on which Sid conspicuously notes tha

ID: 471119 • Letter: S

Question

Sid signs a promissory note payable to Tony on which Sid conspicuously notes that it is "not negotiable" and gives the note to Toney. This instrument is:

A) negotiable.
B) nonnegotiable, because it includes the notation "not negotiable."
C) nonnegotiable, because it is a promissory note.
D) nonnegotiable, because it was given to Bob.


A) write "Ked" on the back and deliver the check to Lois.
B) write "pay to the order of Lois [signed] Ked" on the back and deliver the check to Lois.
C) only deliver the check to Lois.
D) transfer the check through the drawee bank.


A) can attest in writing that he would sign the instrument if possible.
B) cannot transfer the instrument to Sigrid.
C) can sign an allonge and affix it to the instrument.
D) can sign a separate piece of paper and file it for later reference.


A) bearer instruments and order instruments.
B) bearer instruments only.
C) neither bearer instruments nor order instruments.
D) order instruments only.


A) a blank indorsement.
B) a qualified indorsement.
C) a restrictive indorsement.
D) a special indorsement.


A) negotiable.
B) nonnegotiable, because an initial does not state the signer's name.
C) nonnegotiable, because an initial is not a signature.
D) nonnegotiable, because a simple initial implies a lack of binding intent.



Explanation / Answer

Sid signs a promissory note payable to Tony on which Sid conspicuously notes that it is "not negotiable" and gives the note1 to Toney. This instrument is:

A) negotiable.
B) nonnegotiable, because it includes the notation "not negotiable."
C) nonnegotiable, because it is a promissory note.
D) nonnegotiable, because it was given to Bob.


A) write "Ked" on the back and deliver the check to Lois.
B) write "pay to the order of Lois [signed] Ked" on the back and deliver the check to Lois.
C) only deliver the check to Lois.
D) transfer the check through the drawee bank.


A) can attest in writing that he would sign the instrument if possible.
B) cannot transfer the instrument to Sigrid.
C) can sign an allonge and affix it to the instrument.
D) can sign a separate piece of paper and file it for later reference.


A) bearer instruments and order instruments.
B) bearer instruments only.
C) neither bearer instruments nor order instruments.
D) order instruments only.


A) a blank indorsement.
B) a qualified indorsement.
C) a restrictive indorsement.
D) a special indorsement.


A) negotiable.
B) nonnegotiable, because an initial does not state the signer's name.
C) nonnegotiable, because an initial is not a signature.
D) nonnegotiable, because a simple initial implies a lack of binding intent.

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