Which of the following is true regarding the negotiator of bearer paper?
A)The negotiator is not liable to the immediate transferee as a warrantor of the genuineness of the instrument.
B)One who negotiates a bearer instrument by delivery alone does not guarantee payment.
C)The negotiator must indorse a bearer paper when he negotiates it.
D)The mere delivery by the negotiator of a bearer paper does not change title.

Question

Quizplus · Accepted Answer

One who negotiates a bearer instrument by delivery alone does not guarantee payment. This is because bearer instruments are designed to be easily transferable without the need for endorsement. The transfer of a bearer instrument through delivery alone transfers title to the holder, but does not inherently include any warranties about payment, unlike with order instruments where endorsements can carry such warranties.

Which of the Following Is True Regarding the Negotiator of Bearer