Lauren transfers an instrument to Miguel in a form and by a means that makes Miguel a "holder." This is
A)a holding.
B)an assignment.
C)negotiation.
D)presentment.

Question

Quizplus · Accepted Answer

The transfer of an instrument in a way that makes the new holder the owner of the instrument is called "negotiation." Therefore, the best choice is C. A holding (choice A) is not a term used in negotiable instruments law. An assignment (choice B) involves a transfer of rights, but not necessarily the ownership of the instrument. Presentment (choice D) is the act of presenting the instrument for payment, acceptance, or other action by the party obligated to pay on the instrument.

Lauren Transfers an Instrument to Miguel in a Form and by a Means