Question

Which of the following phrases could be written on the face of a check without impairing a check's negotiability?

a. In full satisfaction.
b. For value received.
c. In payment of services rendered.
d. None of these would impair negotiability.

Answer 1

The correct answer is d. None of these would impair negotiability. 'For value received' is a traditional phrase that does not impair negotiability.

Step-by-step explanation:

The correct answer is d. None of these would impair negotiability. When writing on the face of a check, it is important to avoid phrases that could limit the negotiability of the check. Phrases like 'in full satisfaction' or 'in payment of services rendered' could be seen as imposing conditions on the payment, potentially affecting the negotiability of the check. On the other hand, 'for value received' is a traditional phrase that does not impose any conditions and does not impair negotiability.