A is corrent. One of the requirements for negotiability is that the instrument be payable on demand or at a definite time. An instrument which by its terms is payable only upon an act or event, uncertain as to time of occurrence, is not payable at a definite time. The instrument presented is not payable on demand, and its payment rests upon an event which is uncertain as to time of occurrence; therefore it is not negotiable.
B is incorrect. One of the requirements for negotiability is that the instrument be payable on demand or at a definite time. An instrument which by its terms is payable only upon an act or event, uncertain as to time of occurrence, is not payable at a definite time. The instrument presented is not payable on demand, and its payment rests upon an event which is uncertain as to time of occurrence; therefore it is not negotiable.
C is incorrect. A negotiable instrument may recite the transaction which gave rise to it without destroying its negotiability, so long as the payment of the instrument is not "subject to" or conditioned upon performance of the recited agreement.
D is incorrect. The instrument was given as part of the purchase price to be exchanged for Jason’s business. Thus, the business is consideration for the instrument. Also there is no requirement that an instrument must be issued for consideration to be negotiable.
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