Mort transfers an instrument to Neal. This is a negotiation if the transfer is
A)for valuable consideration under a contract.
B)in such form that Neal becomes a holder.
C)pursuant to preliminary contract discussions.
D)without the payment of a recognized medium of exchange.

Question

Mort transfers an instrument to Neal. This is a negotiation if the transfer is​
A)for valuable consideration under a contract.
B)in such form that Neal becomes a holder.
C)pursuant to preliminary contract discussions.
D)without the payment of a recognized medium of exchange.

Quizplus · Accepted Answer

Negotiation of an instrument occurs when it is transferred in such a form that the transferee becomes a holder, which means they have the rights to enforce the instrument.

Mort Transfers an Instrument to Neal