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C is corrent. A promissory note is a two-party instrument in which the maker promises to pay the payee a specified sum of money. In this situation, Cross is the maker and Harris is the payee. A promissory note may make reference to the underlying transaction such as the sale of the computer without destroying negotiability.
A is incorrect. A trade acceptance is a type of draft which contains an order by a seller of goods directing the buyer to pay the seller of the goods.
B is incorrect. A draft, whether negotiable or not, is a three-party instrument. A draft is an instrument in which one party (drawer) orders a second party (drawee) to pay a third party (payee) a sum of money.
D is incorrect. A draft, whether negotiable or not, is a three-party instrument. A draft is an instrument in which one party (drawer) orders a second party (drawee) to pay a third party (payee) a sum of money.