Question

Which of the following is not negotiable?

A). X promises to pay to the order of P in dollars at the rate of exchange prevailing on October 30, 2000 the amount of P1M
B). X promises to pay to the order of P P1M with 12% interest
C). X promises to pay to the order of P P1M in installments
D). X promises to pay to the order of P P1M in two equal installmentsa, the first installment due on Jan. 20,2000 and the second due on Jan. 28, 2001

Answer 1

Option C) X promises to pay to the order of P P1M in installments is not negotiable because it is not payable to order or bearer, but specifically to P in installments.

Step-by-step explanation:

Among the given options, the statement that is typically considered non-negotiable is: C). X promises to pay to the order of P P1M in installments. Negotiability in financial instruments, such as promissory notes or bills of exchange, is a legal concept. Generally, negotiability allows the transfer of the instrument to another party, making it freely tradable. However, when payments are specified to be made in installments, it can complicate the negotiability aspect. Installment payments may limit the transferability of the instrument, as the subsequent payee would need to adhere to the installment schedule. In contrast, options A, B, and D provide clearer terms and conditions for payment, making them more negotiable in financial transactions.