Asked by Shayan Patel on Jun 03, 2024
Verified
An indorsement "Pay Alice Adams" is an assignment rather than a negotiation since it lacks words of negotiability.
Words of Negotiability
Phrases used in financial instruments that indicate the terms under which they can be transferred or assigned to another party.
Negotiation
A discussion aimed at reaching an agreement, where parties involved communicate back and forth to discuss and resolve differences.
- Recognize the legal significance and implications of indorsements on negotiable instruments.
Verified Answer
RD
Rebecca DorcelyJun 07, 2024
Final Answer :
False
Explanation :
An indorsement "Pay Alice Adams" is considered a negotiation rather than an assignment because it transfers the right to payment under the negotiable instrument directly to Alice Adams, maintaining the instrument's negotiability.
Learning Objectives
- Recognize the legal significance and implications of indorsements on negotiable instruments.