Asked by Brandon Pimentel on May 16, 2024
Verified
What two characteristics must a written document have in order to satisfy the requirement that a negotiable instrument be in writing?
A) (1) relative permanence and (2) a signature by both parties.
B) (1) a signature at the end by the party to be charged and (2) movability.
C) (1) relative permanence and (2) acknowledgement.
D) (1) movability and (2) acknowledgement.
E) (1) relative permanence and (2) movability.
Relative Permanence
The quality of a negotiable instrument that ensures its longevity.
Signature
A person's handwritten mark or its digital equivalent used to signify agreement, consent, or identification.
Movability
The quality of a negotiable instrument that ensures it is mobile and available.
- Acknowledge the essentials for an instrument’s negotiability.
Verified Answer
SE
Shannon EklundMay 20, 2024
Final Answer :
E
Explanation :
Negotiable instruments must have (1) relative permanence, meaning they are durable and can withstand the test of time without significant degradation, and (2) movability, indicating they can be physically transferred from one person to another.
Learning Objectives
- Acknowledge the essentials for an instrument’s negotiability.
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