Asked by Apiwe Xozwa on May 30, 2024
Verified
Any transfer for value of an instrument is a negotiation.
Transfer for Value
In insurance law, the assignment or transfer of a policy from the original policy owner to another party in exchange for consideration.
Negotiation
The process of discussing terms in order to reach a mutually acceptable agreement.
- Identify the conditions under which a transfer of a negotiable instrument constitutes negotiation.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
False
Explanation :
Negotiation refers specifically to the transfer of an instrument in such a manner that the transferee becomes the holder of the instrument. Not all transfers for value constitute negotiation, as negotiation requires endorsement and delivery if the instrument is order paper, or just delivery if it is bearer paper.
Learning Objectives
- Identify the conditions under which a transfer of a negotiable instrument constitutes negotiation.