"Negotiability" means that the paper is freely and unconditionally transferable from one person to another by delivery or by delivery and indorsement.

Question

Quizplus · Accepted Answer

Negotiability is a characteristic of certain types of commercial paper, such as checks or promissory notes, that allows them to be transferred from one person to another by delivery or indorsement without any conditions or limitations. This means that the holder can transfer the paper to a new party, who then becomes the new holder and has the same rights as the original holder.

"Negotiability" Means That the Paper Is Freely and Unconditionally Transferable