Vel indorses in blank a check payable to her order, and then loses it. Wang finds the check and, without indorsing it, sells it to Xhi. This is
A)an assignment.
B)a negotiation.
C)a bank transfer.
D)a trade acceptance.

Question

Quizplus · Accepted Answer

A negotiation occurs when a check or other negotiable instrument is transferred to another party who becomes the holder. Since the check was indorsed in blank by Vel, it became payable to bearer and could be negotiated by delivery alone, which is what happened when Wang found it and sold it to Xhi.

Vel Indorses in Blank a Check Payable to Her Order