An instrument may be transferred only by negotiation.

Question

Quizplus · Accepted Answer

An instrument can be transferred either by negotiation or by assignment, depending on the type of instrument and the intentions of the parties involved. Negotiation is specific to negotiable instruments and involves the transfer of rights by endorsement and delivery, while assignment can apply to both negotiable and non-negotiable instruments and involves the transfer of rights through a written agreement.

An Instrument May Be Transferred Only by Negotiation