Asked by Cianna Rodriguez on May 22, 2024
Verified
Which of the following occurs when a former holder of an instrument has the instrument transferred back to him or her by negotiation or other means?
A) Remand
B) Renunciation
C) Reacquisition
D) Rescission
E) Revocation
Reacquisition
The process of buying back or otherwise regaining possession of something previously sold, lost, or given away.
Instrument
A formal legal document, such as a contract, will, bond, lease, or loan, that establishes legal rights and obligations.
Negotiation
A bargaining process in which disputing parties interact informally to attempt to resolve their dispute. Also, the transfer of the rights to a negotiable instrument from one party to another.
- Familiarize oneself with the tasks and descriptions of individuals engaged in negotiable instruments, like the drawer, drawee, and holder.
Verified Answer
MS
Madison SchroederMay 28, 2024
Final Answer :
C
Explanation :
Reacquisition occurs when a former holder of an instrument has the instrument transferred back to him or her by negotiation or other means.When reacquisition occurs,anyone who endorsed the instrument in between the initial acquisition and the reacquisition by the holder has his or her endorsement canceled.When an endorsement is canceled,discharge occurs.The holder who reacquired the instrument can further negotiate the instrument,but the intermediate endorsers will not be held liable.
Learning Objectives
- Familiarize oneself with the tasks and descriptions of individuals engaged in negotiable instruments, like the drawer, drawee, and holder.