Ollie negotiates an order instrument to Phil by
A)assignment of its rights under a contract.
B)delivery with any necessary indorsement.
C)making an unconditional promise to pay.
D)presenting it in response to a demand by B.

Question

Quizplus · Accepted Answer

Delivery with any necessary indorsement is the proper way to negotiate an order instrument, where the instrument is physically transferred to the holder along with an endorsement, thereby transferring the ownership and rights to the holder. Option A is incorrect because assignment of rights under a contract does not necessarily involve delivery of the instrument. Option C is incorrect because a promise to pay does not transfer ownership of the instrument. Option D is incorrect because presenting the instrument in response to a demand does not involve transferring the ownership or rights to the holder.

Ollie Negotiates an Order Instrument to Phil by