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LNG Corporation and Midstates Utility Company Enter a Contract for a Sale

Question 42

Multiple Choice

LNG Corporation and Midstates Utility Company enter a contract for a sale of liquefied natural gas. LNG draws a draft unconditionally ordering Midstates Utility to pay $50,000 to LNG's order in sixty days. Midstates Utility signs and dates the draft.
-Refer to Fact Pattern 23-2. This instrument is


A) a banker's acceptance.
B) a nonnegotiable instrument.
C) apromissory note.
D) a trade acceptance.

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