Which of the following is a similarity between bearer paper and order paper?
A) both require a specific payee to be named
B) both require indorsements to be considered negotiable
C) both require delivery to be considered negotiable
D) both can be claimed by whoever presents the instrument for payment

Question

Quizplus · Accepted Answer

Both bearer paper and order paper require delivery to be considered negotiable. Bearer paper is negotiable by physical possession of the instrument, while order paper requires delivery to the named payee or their authorized representative. Both require the physical transfer of possession for negotiability. The other options are incorrect as bearer paper does not require a specific payee to be named (anyone in possession can claim it) and order paper requires a specific payee to be named (not just anyone can claim it) and both do require indorsements, but this is not the similarity being asked for.

Which of the Following Is a Similarity Between Bearer Paper