Asked by
Maddie Kirkland
on Nov 27, 2024
Verified
LNG LLC and Mainline Corporation enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Mainline to pay $50,000 to LNG's order in sixty days. Mainline signs and dates the draft. LNG can sell the draft to
A) Mainline only.
B) LNG's bank only.
C) any party after the draft has been paid.
D) any party before payment is due.
Draft
A preliminary version of a written document or an order for a bank to pay a specified sum from the drawer's account.
Unconditionally
Without any conditions or limitations.
Liquefied Natural Gas
Natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.
- Identify the differences between types of negotiable instruments and their uses in various transactions.
- Acquire knowledge on the effect of an instrument's negotiability on its transferability and the enforcement of its terms.
Verified Answer
GL
Learning Objectives
- Identify the differences between types of negotiable instruments and their uses in various transactions.
- Acquire knowledge on the effect of an instrument's negotiability on its transferability and the enforcement of its terms.