Asked by Kiran Neena on Jul 27, 2024
Verified
The court in Cooperative Centrale Raiffeisen-Boerenleenbank B.A. v. Bailey found:
A) whether an instrument is negotiable is a question of fact.
B) whether an instrument is negotiable is to be determined without reference to the intent of the parties.
C) the wording of the note was unclear and therefore it did not fall within the UCC Article 3 requirements of negotiability.
D) the question of whether the promissory note was negotiable had to be determined by questioning the parties to the transaction as to their intent.
Cooperative Centrale Raiffeisen-Boerenleenbank B.A.
A major cooperative banking institution, commonly known as Rabobank, headquartered in the Netherlands, known for its focus on agricultural financing.
Negotiable
describes an item, typically a financial instrument like a check or bill of exchange, that can be endorsed and transferred from one party to another.
UCC Article 3
A portion of the Uniform Commercial Code that governs negotiable instruments, including checks, promissory notes, and drafts.
- Assess the elements influencing an instrument's negotiability and its significance for transferring rights.
Verified Answer
BF
Brigith FloresJul 31, 2024
Final Answer :
B
Explanation :
Negotiability of an instrument under the Uniform Commercial Code (UCC) is determined by the terms of the instrument itself and the requirements set forth in the UCC, without regard to the subjective intent of the parties.
Learning Objectives
- Assess the elements influencing an instrument's negotiability and its significance for transferring rights.