Which of the following is true?
A) Where an instrument is payable to bearer.
B) Where an instrument is payable to bearer, it must be negotiated by endorsement and delivery.
C) Where an instrument is payable to bearer, it cannot be negotiated.
D) Where an instrument is payable to bearer, it cannot be endorsed.
E) Where an instrument is payable to bearer, it may be negotiated by endorsement and delivery.

Question

Quizplus · Accepted Answer

Where an instrument is payable to bearer, it may be negotiated by endorsement and delivery. This means that the holder can endorse the instrument by signing it and then deliver it to someone else, who becomes the new holder and can also endorse and deliver it to another party if they choose. Because the instrument is payable to bearer, whoever holds it has the right to receive payment, regardless of whether they are the original recipient named on the instrument or not.

Which of the Following Is True