Which of the Following Is True Regarding an IOU Instrument

Multiple Choice

Which of the following is true regarding an IOU instrument containing the language "payable on demand"?

A) The instrument is not negotiable because it does not contain an unconditional promise or order to pay, but it may be an enforceable contract.
B) The instrument contains an unconditional promise to pay; and, therefore, the fact that it is an IOU instrument does not affect negotiability.
C) The instrument contains an unconditional promise to pay but nevertheless is not negotiable because it is an IOU instrument.
D) The instrument is not negotiable because the words "payable on demand" are included; otherwise, the IOU instrument would contain an unconditional promise to pay.
E) The instrument is not negotiable, nor could it be an enforceable contract, because it does not contain an unconditional promise to pay.