An instrument payable to two or more persons in the alternative, such as a check "payable to the order of Elena or Ferrar,"
A)requires the indorsement of only of the parties to be negotiated.
B)requires the indorsement of both of the parties to be negotiated.
C)must be converted to a bearer instrument to be negotiated.
D)is nonnegotiable.

Question

Quizplus · Accepted Answer

When an instrument is payable to two or more persons in the alternative (using "or"), it requires the endorsement of only one of the parties to be negotiated. This allows for more flexibility in transferring the instrument.

An Instrument Payable to Two or More Persons in the Alternative