Question

Which of the following is not negotiable for the reason it is not payable at a determinable future time?

A). One week after X passes the CPA Board Exam, I promise to pay to the order of Y P10,000. Sgd. Z.
B). Thirty days after demand, drawer Z directs Drawee X to pay Y or order P10,000
C). Ten days after the death of X, I promise to pay to the order of Y P10,000. Sgd. Z
D). On or before Oct. 31, 1998, I promise to pay to the order of Y P10,000. Sgd. Z.

Answer 1

The correct answer is option C) Ten days after the death of X, I promise to pay to the order of Y P10,000. Sgd. Z.

Step-by-step explanation:

Option C is not negotiable because the payment is dependent on the death of X. The death of X is not a determinable future time as it is unpredictable. Therefore, it does not meet the requirement of being payable at a determinable future time.

In contrast, options A, B, and D specify a specific future time when payment is due. Option A states that payment will be made one week after X passes the CPA Board Exam, option B states that payment will be made thirty days after demand, and option D states that payment will be made on or before October 31, 1998.

To summarize, option C is not negotiable because it does not meet the requirement of being payable at a determinable future time, as it depends on the unpredictable event of the death of X.