If the instrument is order paper, how can a person become a holder?
A) Its indorsement by the appropriate parties.
B) Transfer of its possession.
C) Both a t ransfer of its possession and it s indorsement by the appropriate parties are necessary.
D) None of these.

Question

If the instrument is order paper, how can a person become a holder?
A) Its indorsement by the appropriate parties.
B) Transfer of its possession.
C) Both a t ransfer of its possession  and it s indorsement by the appropriate parties  are necessary.
D) None of these.

Quizplus · Accepted Answer

For an instrument that is order paper, a person can become a holder through both the transfer of its possession and its endorsement by the appropriate parties. This is because order paper requires an endorsement for the transfer to be effective.

If the Instrument Is Order Paper, How Can a Person