Asked by Alawia Alawi on Jun 10, 2024
Verified
Which statement is true regarding negotiation of an instrument?
A) Negotiation of both an order instrument and bearer instrument is by delivery alone.
B) Negotiation of both an order instrument and bearer instrument require endorsement plus delivery.
C) Negotiation of an order instrument is by endorsement plus delivery, while negotiation of a bearer instrument is by delivery alone.
D) Negotiation of a bearer instrument is by endorsement plus delivery, while negotiation of an order instrument is by delivery alone.
E) Negotiation of both an order instrument and a bearer instrument requires both delivery and an additional three days to allow for bank clearance.
Bearer Instrument
A type of financial security that is payable to the holder or presenter of the document.
Negotiation
The process of discussing something with someone in order to reach a mutually acceptable agreement or compromise.
Order Instrument
A financial document that is payable to a specific person or entity, distinguishing it from bearer instruments which are payable to whoever holds the document.
- Comprehend the roles of endorsement and delivery during the negotiation of instruments.
Verified Answer
Learning Objectives
- Comprehend the roles of endorsement and delivery during the negotiation of instruments.
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