Clancy sells shares in Darling Pool & Spa Company to Eton.Clancy does not deliver the actual possession of the shares to Eton,but gives him the key to a safety-deposit box in First State Bank in which the stock certifi-cates are locked.Presenting the key is
A)realdelivery.
B)constructivedelivery
C)delivery by agent .
D)nodelivery

Question

Quizplus · Accepted Answer

Giving the key to a safety-deposit box where the stock certificates are stored is an example of constructive delivery. While actual delivery involves physically transferring the shares, constructive delivery involves providing access to the shares or their documentation. Once Eton has the key, he has the ability to take ownership of the shares by retrieving the certificates from the safety-deposit box.

Clancy Sells Shares in Darling Pool & Spa Company to Eton.Clancy