To have the full benefit of negotiability,negotiable instruments must:
A)meet the requirements of negotiability.
B)meet the requirements of negotiability and be acquired by a party who notified the maker or drawer of the transfer.
C)be acquired by a holder in due course.
D)Both (a) and (c).

Question

Quizplus · Accepted Answer

In order to have the full benefit of negotiability, negotiable instruments must meet the requirements of negotiability (which include being a written and signed promise or order to pay a specific amount of money), and must be acquired by a holder in due course (who takes the instrument for value, in good faith, without notice of any claims or defenses to the instrument). Therefore, choice D - which includes both meeting the requirements of negotiability and being acquired by a holder in due course - is the correct answer.

To Have the Full Benefit of Negotiability,negotiable Instruments Must