Asked by Jenna Raney on Apr 27, 2024
Verified
Traveler's checks that commonly require,as a condition to payment,a countersignature of a person whose specimen signature appears on the draft.Traveler's checks are:
A) voidable.
B) negotiable.
C) nonnegotiable.
D) unenforceable.
Traveler's Checks
Preprinted, fixed-amount checks designed to allow the person signing it to make an unconditional payment to someone else as a result of having paid the issuer for this privilege.
Negotiable
Capable of being transferred or exchanged for value by endorsement or delivery.
Countersignature
A second signature added to a document to verify or confirm its authenticity.
- Obtain insight into particular negotiable instruments and the legal ramifications of their conditions, like traveler's checks and the judgment rate.
Verified Answer
MJ
Matty JollerApr 29, 2024
Final Answer :
B
Explanation :
Revised Article 3 addresses the negotiability of traveler's checks that commonly require,as a condition to payment,a countersignature of a person whose specimen signature appears on the draft.Under the revision,the condition does not prevent the instrument from meeting the "unconditional promise or order" requirement.
Learning Objectives
- Obtain insight into particular negotiable instruments and the legal ramifications of their conditions, like traveler's checks and the judgment rate.
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