Asked by Gabriela Alcaraz on Jun 30, 2024
Verified
Negotiating bearer instruments requires both indorsement and delivery because the use of bearer instruments involves more risk through loss or theft.
Bearer Instruments
Financial documents that entitle the holder or bearer to a sum of money or value stated on the document, without requiring ownership registration.
Indorsement
An act of signing a document, often found on the back of a check, to transfer rights or to authenticate.
Negotiating
The process of discussing and arriving at a mutual agreement between parties with differing needs or viewpoints.
- Distinguish between bearer and order instruments and their respective requirements for negotiation.
- Gain insight into how diverse methods of endorsement influence the negotiation process and liability.
Verified Answer
Learning Objectives
- Distinguish between bearer and order instruments and their respective requirements for negotiation.
- Gain insight into how diverse methods of endorsement influence the negotiation process and liability.
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