Which statement is true regarding negotiation of an instrument?
A) Negotiation of both an order instrument and bearer instrument is by delivery alone.
B) Negotiation of both an order instrument and bearer instrument require endorsement plus delivery.
C) Negotiation of an order instrument is by endorsement plus delivery, while negotiation of a bearer instrument is by delivery alone.
D) Negotiation of a bearer instrument is by endorsement plus delivery, while negotiation of an order instrument is by delivery alone.
E) Negotiation of both an order instrument and a bearer instrument requires both delivery and an additional three days to allow for bank clearance.

Question

Quizplus · Accepted Answer

Negotiation of an order instrument requires endorsement (the signature of the holder) plus delivery to the new holder, while a bearer instrument can be negotiated simply by delivery to the new holder without the need for an endorsement.

Which Statement Is True Regarding Negotiation of an Instrument