Negotiation of which type(s)of instrument requires indorsement?

Question

Quizplus · Accepted Answer

Only order instruments require indorsement, which means that the person who owns the instrument must sign it over to a new owner in order for that owner to have legally recognized ownership. Bearer instruments, on the other hand, do not require indorsement, as they are transferred simply by possession. Thus, option A and C are incorrect, while option D is also incorrect as both types of instruments require some form of legal transfer. Only option B correctly identifies the type of instrument that requires indorsement.

Negotiation of Which Type(s)of Instrument Requires Indorsement