Asked by Arika DeCara on Apr 25, 2024
Verified
An incomplete instrument is not negotiable. However, when it is completed, it may become negotiable.
Incomplete Instrument
A legal document or financial instrument that is missing essential information or signatures.
Negotiable
A term referring to a document or instrument that is transferable from one person to another in a form that is legally effective for the transfer.
- Understand the distinction between negotiable instruments and non-negotiable documents.
- Familiarize yourself with the situations that compromise an instrument's negotiability.
Verified Answer
RE
roshan ekanayake7 days ago
Final Answer :
True
Explanation :
An incomplete instrument lacks some necessary information (e.g., the amount) but can become negotiable once it is properly completed, assuming it meets all other requirements for negotiability under the Uniform Commercial Code (UCC) or applicable law.
Learning Objectives
- Understand the distinction between negotiable instruments and non-negotiable documents.
- Familiarize yourself with the situations that compromise an instrument's negotiability.