Asked by Jibreel Ahmad on Jun 16, 2024
Verified
A person who comes into possession of a bearer instrument by theft cannot claim the payment due on it.
Bearer Instrument
A negotiable financial instrument that denotes ownership to whoever physically holds it.
Theft
The act of unlawfully taking someone else's property with the intent to permanently deprive them of it.
- Grasp the concept of endorsement and delivery in the negotiation of instruments.
- Understand the role and requirements of signatures in negotiable instruments.
Verified Answer
SK
Sameh KuleibJun 21, 2024
Final Answer :
False
Explanation :
Bearer instruments are payable to the holder or possessor of the document, regardless of how they came into possession of it. The issuer cannot refuse payment based on how the holder acquired the instrument.
Learning Objectives
- Grasp the concept of endorsement and delivery in the negotiation of instruments.
- Understand the role and requirements of signatures in negotiable instruments.
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