Which of the Following Statements Will Cause an Instrument to Be

question 62

Multiple Choice

Which of the following statements will cause an instrument to be nonnegotiable?

• A)"Payment is subject to the terms of a mortgage dated August 30,2005."
• B)"Payment is secured by a mortgage dated August 30,2005."
• C)"Payment is in consideration of two months' rent."
• D)"Payment to be made 30 days after date,for a note dated August 30,2005."

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Definitions:

Void Title

A situation where a property or asset transfer is invalid due to defects in the transaction process, leading to a lack of transfer of ownership.

Ordinary Course Of Business

Activities and transactions that are part of a company's usual and customary operations.

Origin Contract

A contract which determines the initial terms and conditions set forth for an agreement or transaction.

Voidable Title

indicates that a title transfer may be nullified if the buyer discovers the seller did not have ownership rights or authority to sell the item in question.