On January 1, Jasmine Bought a Speedboat from Malcolm

question 69

Multiple Choice

On January 1, Jasmine bought a speedboat from Malcolm. The purchase price was $100 000. Jasmine gave Malcolm a promissory note for $100 000. The note was payable in five monthly instalments beginning on March 1. Which of the following statements is TRUE?

• A) Jasmine's promissory note cannot contain an acceleration clause because it is payable in instalments.
• B) A promissory note, like a bill of exchange, must have a drawee.
• C) Because a promissory note must be for a "sum certain," the note that Jasmine created could not require her to pay interest on the purchase price of $100 000.
• D) If Malcolm is unable to recover any money under the promissory note, he must sue Jasmine on the basis of their sales contract, rather than on the basis of the promissory note itself.
• E) After each installment payment, Jasmine should make sure that Malcolm writes a receipt onto the promissory note itself.

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Definitions:

Temporary Leave

Temporary leave is a period of time when an employee is officially allowed to be absent from their workplace for various reasons, such as health issues or personal matters.

Temporary Liaison

A short-term collaboration or relationship established to achieve a specific goal.

Experienced Manager

A professional who has gained a significant amount of expertise and knowledge in managing through years of practice and learning.

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Describes individuals or entities that have limited exposure, knowledge, or skills in a particular area or activity due to fewer opportunities to practice or engage in it.