A negotiable instrument is freely transferable by endorsement if it is a an instrument ........

Negotiable instrument Act Others

A negotiable instrument is freely transferable, by endorsement if it is a/an ____________ instrument.

order

bearer

both a & b

None of the above

- A negotiable instrument is a written document guaranteeing the payment of a specific amount of money, either on-demand or at a set time.

- It is freely transferable from one person to another.

- Order Instrument:

- Requires endorsement for transferring.

- Made payable to the order of a specified person or entity.

- Bearer Instrument:

- Transferable by mere delivery.

- No need for endorsement.

- Both a & b:

- Encompasses both order and bearer instruments.

- None of the above:

- Incorrect, as both order and bearer instruments are negotiable.

Correct Answer: Option 1 - order

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