Fact Pattern 25-2 LNG Corporation and Mid-State Utility Company Enter a Contract for a Contract

question 71

Multiple Choice

Fact Pattern 25-2
LNG Corporation and Mid-state Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mid-state Utility to pay $50,000 to LNG's order in sixty days. Mid-state Utility signs and dates the draft.
-Refer to Fact Pattern 25-2. This instrument is

• A) ​a banker's acceptance.
• B) ​a nonnegotiable instrument.
• C) ​a promissory note.
• D) ​a trade acceptance.

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