Asked by Sallye Ferguson on Jun 03, 2024
Verified
A person can be a holder if:
A) the instrument has been issued to that person.
B) the instrument has been transferred to that person by negotiation.
C) the instrument is ambiguous.
D) Either the instrument has been issued to that person or the instrument has been transferred to that person by negotiation.
Negotiation
The process of discussing and arriving at a mutual agreement between parties.
Ambiguous
Open to more than one interpretation; not having one obvious meaning.
- Pinpoint the scenarios where transferring a negotiable instrument equates to its negotiation.
- Comprehend the pivotal importance of transfer and holding in the negotiation dynamics of negotiable instruments.
Verified Answer
JA
jesus acostaJun 08, 2024
Final Answer :
D
Explanation :
A person becomes a holder of a negotiable instrument either by the instrument being issued to them or through the process of negotiation, where the instrument is legally transferred to them from another party. Choices A and B are specific instances that fall under the broader category described in D, making D the correct comprehensive choice.
Learning Objectives
- Pinpoint the scenarios where transferring a negotiable instrument equates to its negotiation.
- Comprehend the pivotal importance of transfer and holding in the negotiation dynamics of negotiable instruments.
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