Question

"I promise to pay $5,000 to Lorenzo on or before August 1, 2001, in return for the same amount borrowed from him on May 1, 2001." Under these circumstances, the note is ________. Select one: A. negotiable because it is a simple contract B. not negotiable because the note is not payable to bearer or to order C. not negotiable because the note states the reason for the debt D. negotiable because it was handwritten

Answer 1

Answer:

C.

Explanation:

Based on the scenario being described within the question it can be said that in this circumstance the note is not negotiable because the note states the reason for the debt. Since the reason it stated it proves as to why the money needs to be paid to the individual and must therefore be paid in full on the date that has been listed.