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Questions and Answers
What is the characteristic of a negotiable instrument with regard to transferability?
What is the characteristic of a negotiable instrument with regard to transferability?
- Ownership is transferred to the transferee by delivery if payable to bearer (correct)
- Ownership is transferred by presentation to the bank
- Ownership is transferred by notification to the payer
- Ownership is transferred by endorsement and delivery if payable to order
What is the right of the holder of a negotiable instrument?
What is the right of the holder of a negotiable instrument?
- Transfer the instrument to another person without any rights
- Recover the money from the person liable on the instrument (correct)
- Claim a double amount from the payer
- Recover the money only from the original issuer
What advantage does a holder in due course have over the previous parties?
What advantage does a holder in due course have over the previous parties?
- Has no advantage over the previous parties
- Is not protected from any defects in the title
- Gets a better title than the person from whom he acquired the title (correct)
- Is not entitled to recover the amount from the payer
How is the ownership of a negotiable instrument payable to order transferred?
How is the ownership of a negotiable instrument payable to order transferred?
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What does 'freely transferable' mean in the context of negotiable instruments?
What does 'freely transferable' mean in the context of negotiable instruments?
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