To have the full benefit of negotiability, negotiable instruments must:
A) meet the requirements of negotiability.
B) meet the requirements of negotiability and be acquired by a party who notified the maker or drawer of the transfer.
C) be acquired by a holder in due course.
D) Both meet the requirements of negotiability and also be acquired by a holder in due course.

Question

To have the full benefit of negotiability, negotiable instruments must:
A) meet the requirements of negotiability.
B) meet the requirements of negotiability and be acquired by a party who notified the maker or drawer of the transfer.
C) be acquired by a holder in due course.
D) Both meet the requirements of negotiability  and also  be acquired by a holder in due course.

Quizplus · Accepted Answer

For an instrument to have the full benefit of negotiability, it must both meet the requirements of negotiability and be acquired by a holder in due course. This ensures the instrument can be transferred freely and provides the holder certain protections against defenses and claims that could be raised by prior parties.

To Have the Full Benefit of Negotiability, Negotiable Instruments Must