What is meant by the term "delivery" in the process of negotiation?
A) The physical handing of an instrument from someone entitled to it, to the person intended to receive it.
B) The passing of a warranty that the instrument is collectible.
C) The passing of a warranty that an instrument qualifies as a negotiable instrument.
D) The passing of a warranty that the recipient is a holder.
E) The passing of a warranty that the recipient is a holder in due course.

Question

Quizplus · Accepted Answer

Delivery in the context of negotiation refers to the act of physically transferring an instrument from the person who is entitled to possess it to the person who is intended to receive it. This is a crucial step in the negotiation process as it signifies the actual transfer of possession and, in many cases, the transfer of rights associated with the instrument.

What Is Meant by the Term "Delivery" in the Process