The transferring of an instrument in such a way as to make the transferee the holder of the paper is termed:
A) an assignment.
B) a conversion.
C) a sale.
D) a negotiation.

Question

Quizplus · Accepted Answer

The transferring of an instrument in such a way as to make the transferee the holder of the paper is termed a negotiation. This involves the transfer of ownership rights to the transferee. In other words, a negotiation is the act of transferring an instrument in a way that the transferee becomes the owner of the instrument, and the transferor loses their ownership rights to it.

The Transferring of an Instrument in Such a Way as to Make