Mortimer negotiates an instrument to Nadia. Negotiation is the transfer of an instrument
A) for valuable consideration under a contract.
B) in such form that the transferee becomes a holder.
C) pursuant to preliminary contract discussions.
D) without the payment of a recognized medium of exchange.

Question

Quizplus · Accepted Answer

Negotiation is the process of transferring an instrument in such a way that the transferee becomes a holder, with all the rights and liabilities of a holder. It requires valuable consideration as part of a contract, but the payment can be in any recognized medium of exchange, which may or may not include money. Preliminary contract discussions are not part of the negotiation process.

Mortimer Negotiates an Instrument to Nadia