If an instrument is payable to multiple persons using the word "and," then the instrument ________.
A)cannot be negotiated any further
B)cannot be negotiated by either party individually
C)can only be further negotiated jointly
D)can only be further negotiated with the signature of the drawer

Question

Quizplus · Accepted Answer

When an instrument is payable to multiple persons using the word "and," it means that all the payees must endorse the instrument for it to be further negotiated. This makes it a joint ownership instrument, and all payees have to act together in endorsing the instrument to the next party. Therefore, option C, which states that the instrument can only be further negotiated jointly, is the correct choice.

If an Instrument Is Payable to Multiple Persons Using the Word