Asked by Taylor Casbon on May 30, 2024
Verified
What is negotiation? How does one become a "holder" of an instrument?
Negotiation
The process by which parties in dispute or potential agreement discuss their differences and attempt to reach a mutually acceptable resolution.
Holder
In finance and legal terms, an individual or entity that possesses a negotiable instrument, like a check or bond, and has the right to enforce it.
- Comprehend the negotiation process of negotiable instruments.
- Understand the concept of negotiation and how one becomes a holder of a negotiable instrument.
Verified Answer
AQ
ahmad qaderiJun 01, 2024
Final Answer :
Negotiation is an instrument's voluntary or involuntary transfer by a person other than the issuer in such a manner that the transferee becomes a holder. If the instrument is payable to order, it is negotiated by delivery with any necessary indorsement. If payable to bearer, it is negotiated by delivery. A person becomes a holder by receiving possession of an instrument drawn, issued, or indorsed to him, or to his order, or to bearer, or in blank.
Learning Objectives
- Comprehend the negotiation process of negotiable instruments.
- Understand the concept of negotiation and how one becomes a holder of a negotiable instrument.
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