Asked by Robert Brownlee Jr on Jul 07, 2024
Verified
What are the three significant effects resulting from the indorsement of a negotiable instrument?
Indorsement
A rephrased definition: The act of signing one's name on the back of a negotiable instrument, effectively transferring rights to another party.
Negotiable Instrument
A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the ability to be transferred to another party.
Significant Effects
Impacts or changes that are considerable in size, importance, or consequence in a specific context or situation.
- Comprehend the repercussions and legal outcomes associated with endorsing negotiable instruments, encompassing liability and the assignment of rights.
Verified Answer
FB
Fabiola BautistaJul 09, 2024
Final Answer :
First,an indorsement is necessary in order for the negotiation of an instrument that is payable to the order of a specified person (order paper).Second,the form of the indorsement that the indorser uses also affects future attempts to negotiate the instrument.Third,an indorsement generally makes a person liable on the instrument.
Learning Objectives
- Comprehend the repercussions and legal outcomes associated with endorsing negotiable instruments, encompassing liability and the assignment of rights.