CHAPTER 21—ESSENTIALS OF NEGOTIABILITY Key
1. Which of the following is a requirement of negotiability?
2. Which of the following is true of a negotiable instrument?
3. Which of the following is true of a check made out to the order of a person?
4. Jim agreed to pay Jose $1,000 by check, provided he is able to sell his farm. However, he did not mention the
number of days it would take for him to sell the farm nor did he provide a contingency date. Which of the
following is legally permissible in this scenario?
5. The UCC defines _____ as “the first delivery of an instrument by the maker or drawer for the purpose of
giving rights on the instrument to any person.”
6. Which of the following best describes delivery?
7. In case a negotiable instrument is only partially filled in and signed before delivery:
8. A negotiable instrument must be in writing and signed by the party executing it.
9. An order or promise in an negotiable instrument must be conditional.
10. The law requires that a negotiable instrument must be written in a particular form.
11. An instrument executed with a lead pencil does not meet the legal requirements of negotiability.
12. The language used in a promissory note need not show that a promise is intended.
13. The sum payable in a negotiable instrument cannot be dependent on future profits.
14. A negotiable instrument could be payable in gold bullion.
15. An instrument is payable to order when the drawer wishes to indicate that the instrument will be paid, to
anyone the payee may transfer the instrument by indorsement.
16. When a negotiable instrument is payable to order, the payee need not be named.
17. Whenever delivery is made in connection with the original issue, it must be conditional.
18. The negotiability of an instrument is affected if it is undated.
19. The name of the place where an instrument was drawn need not be specified.
20. Explain the requirements of negotiability.