The term negotiation, as it applies to a negotiable instrument, applies to
A)the ability of the holder to obtain its value.
B)the conditions of the instrument.
C) the terms of the instrument.
D) all of the above.

Question

Quizplus · Accepted Answer

Negotiation of a negotiable instrument refers to the process by which the holder transfers the instrument to another party, thereby enabling the new holder to claim the value of the instrument. It does not directly relate to the conditions or terms of the instrument itself, but rather to the ability of the holder to transfer and thus obtain its value.

The Term Negotiation, as It Applies to a Negotiable Instrument