Asked by DARIN FILMS on Jul 24, 2024
Verified
A qualified indorsement destroys negotiability.
Qualified Indorsement
An endowment that restricts the transfer of a negotiable instrument except under certain conditions.
Negotiability
Negotiability refers to the characteristic of a document or instrument that allows it to be transferred or assigned from one party to another, ensuring the transferee obtains certain legal rights.
- Investigate the consequences that specialized endorsements like qualified and restrictive have on the aspects of liability and transferability.
Verified Answer
NM
Narly MedinaJul 30, 2024
Final Answer :
False
Explanation :
A qualified indorsement does not destroy negotiability. It only restricts the indorser's liability for the instrument.
Learning Objectives
- Investigate the consequences that specialized endorsements like qualified and restrictive have on the aspects of liability and transferability.