Delivery alone is insufficient to negotiate an instrument when it is payable to:
A) order and the last indorsement is in blank.
B) cash and signed by the drawer.
C) bearer and is not indorsed.
D) the order of Doreen Tyrell and is not indorsed.

Question

Quizplus · Accepted Answer

When an instrument is payable to the order of a specific person, it cannot be negotiated through delivery alone unless it is properly indorsed by the payee or subsequent indorsers. In this case, the instrument is payable to the order of Doreen Tyrell, so delivery alone is insufficient unless it is properly indorsed. Options A and C involve instruments that are either in blank or not indorsed, but they are payable to the bearer or to order in blank, respectively, and can be negotiated through delivery alone. Option B is not possible because an instrument payable to cash would also need to be signed by the intended recipient to be negotiable.

Delivery Alone Is Insufficient to Negotiate an Instrument When It