On behalf of Digital Cable Company, Ed signs an instrument in which he promises to deliver I, 000 feet of optic fiber cable to First Internet Bank on March l. This instrument is a. negotiable. b. nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency. c. nonnegotiable, because it does not indicate a specific type of cable. d. nonnegotiable, because it does not recite any consideration.

Question

Business

Guest

17 June, 06:43

On behalf of Digital Cable Company, Ed signs an instrument in which he promises to deliver I, 000 feet of optic fiber cable to First Internet Bank on March l. This instrument is a. negotiable. b. nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency. c. nonnegotiable, because it does not indicate a specific type of cable. d. nonnegotiable, because it does not recite any consideration.

+2

Answers (2)

Know the Answer?

Cortez Burnett · Answer 1

The correct answer is letter "B": nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency.

Explanation:

Non-negotiable instruments are those in which transfer is not easy from one party to another. The character of non-negotiable also implies talking about that the price of that asset cannot be adjusted according to the currency used in the territory where the transaction takes place.

Araceli Ortega · Answer 2

b. nonnegotiable, because cable is not a medium of exchange authorized or adopted by a government as currency.

Explanation:

Non negotiable instrument is one that ownership cannot be transfered to another person.

In this case a promissory note to deliver cables to First Internet Bank cannot be transfered to any other person but the company the delivery was intended for. It cannot be exchanged for goods or services.

Non negotiable can also be when the initiator of a transaction is unwilling to make changes to the value originally stated in the instrument.