Negotiability is the characteristic that distinguishes commercial paper and instruments from ordinary contracts.

Question

Quizplus · Accepted Answer

Negotiability means that the commercial paper or instrument can be transferred to a new holder who can then become the rightful owner with all the same rights and obligations as the original holder. This distinguishes it from ordinary contracts which cannot be transferred without the consent of all parties involved.

Negotiability Is the Characteristic That Distinguishes Commercial Paper and Instruments