Delivery alone is insufficient to negotiate an instrument when it is payable to:
A) cash and signed by the drawer.
B) the order of John Jones and is not indorsed.
C) bearer and is not indorsed.
D) order and the last indorsement is in blank.

Question

Quizplus · Accepted Answer

For an instrument payable to the order of a specific person (in this case, John Jones), an endorsement by that person (or another authorized party) is required in addition to delivery for the instrument to be properly negotiated. If it is not endorsed, merely delivering the instrument does not complete the negotiation process. Choices A and C involve instruments that do not require endorsement for negotiation (payable to cash or bearer), and choice D involves an instrument that has already been endorsed in blank, which means it can be negotiated by delivery alone.

Delivery Alone Is Insufficient to Negotiate an Instrument When It