Would an Instrument Containing the Following Language Be Negotiable? "Harold

question 66

Multiple Choice

Would an instrument containing the following language be negotiable? "Harold T. Stone, as President, hereby promises to pay $12,348 to the order of Joe Jones Furniture for office equipment for Redtyn Corporation, payable from its corporate assets. (Signed) Harold T. Stone as President, Redtyn Corporation."

• A) No, because the promise refers to another contract.
• B) No, because its payment is limited to a particular fund.
• C) Yes, because Redtyn is a business entity.
• D) Yes, because it meets all the requirements of negotiability.

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Definitions:

Transitional Fit

A type of fit in mechanical engineering where parts can either move together freely (clearance fit) or interfere slightly (interference fit), depending on the tolerances.

Maximum Interference

The largest value by which one part exceeds the size of its mating part, making assembly possible only with the application of force.

Force Fit

A type of interference fit where components are pressed together using high force, resulting in a very tight fit with no movement between parts.

Hole

An opening through a solid body or surface, typically circular.