Question

JeanClaude creates and signs a promissory note. He promises to pay Suzy $1,000 worth of French francs plus $500 worth of custom-made shirts on October 15, in exchange for Suzy's help in renovating his kitchen. The note is :____________

A) nonnegotiable, because of JeanClaude's signature.
B) negotiable, because all the elements of the note are valid.
C) nonnegotiable, because it calls for payment in French francs.
D) nonnegotiable, because it calls for payment in shirts.

Answer 1

D

Step-by-step explanation:

nonnegotiable, because it calls for payment in shirts.

Non negiotiable promissory note is an unconditional promise in writing made by one person to another. It is signed by the maker agreeing to pay the payee the beneficiary either on demand or at a fixed or determinable future time. JeanClaude made a nonnegotiable promissory note.

Answer 2

D) nonnegotiable, because it calls for payment in shirts.

Step-by-step explanation:

The reason is that the both have agreed on the terms of payment and includes the payment in shirt which is a consideration that has monetary value of $500 and hence is part of the total consideration of $1500 for the service of renovating kitchen. So once the clauses of the contract are accepted then it can not be revoked unless the other party is also willing to waive off the contract clause.

In this situation, the note is nonnegotiable because of the inclusion of payment only accepted in the form of $1000 money and $500 in the form of custom-made shirts.