Asked by Djennane Douge on May 20, 2024
Verified
The courts will never presume a negotiation of order paper was intended; the parties must clearly indicate a negotiation or else the courts will presume an assignment was intended.
Order Paper
A financial document that requires payment to a specific person or entity and is transferable by endorsement.
Negotiation
The process of discussing something with others to reach a mutual agreement.
- Comprehend the principle of negotiation and assignment within the realm of negotiable instruments.
Verified Answer
NG
Nardia GreenwoodMay 27, 2024
Final Answer :
False
Explanation :
Courts can presume negotiation for order paper if it is endorsed and delivered properly, as negotiation is the typical method for transferring order papers, unlike bearer paper which does not require endorsement. The specific intentions for negotiation versus assignment must be clearly indicated, but the default assumption for order paper transfers can be negotiation if it meets the formal requirements.
Learning Objectives
- Comprehend the principle of negotiation and assignment within the realm of negotiable instruments.
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