Asked by Nazareth Valladares on Apr 30, 2024
Verified
________ is the transfer of possession of a negotiable instrument to a third party who becomes a holder of the negotiable instrument.
A) Certification
B) Negotiation
C) Acknowledgement
D) Referral
E) Consignment
Negotiation
A discussion aimed at reaching an agreement.
Transfer
The act of moving assets, rights, or obligations from one party to another through sale, gift, or other means.
Possession
The control or ownership of something, whether personal property or real estate.
- Understand the duties and functions of stakeholders in the negotiation and formal acceptance of negotiable instruments.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
B
Explanation :
One important characteristic of negotiable instruments is the ease associated with transferring the instrument to a third party.Once a negotiable instrument is created,it can be transferred to another party through negotiation.According to Uniform Commercial Code Section 3-201,negotiation is the transfer of possession to a third party who becomes the holder of the negotiable instrument.
Learning Objectives
- Understand the duties and functions of stakeholders in the negotiation and formal acceptance of negotiable instruments.