Business Law II
Business Law II
Is the check a bearer instrument or an order instrument?
A bearer instrument is one that gives the person holding it (holder) the power and rights of owning the document as well as any title herewith. Properties here include bonds, or shares and in some cases property (August, 2009). There is no written record of who is the real or original owner of the property or one with powers to transfer the power of ownership. Business laws assume that whoever holds the bearer document is the rightful owner of the property in question. An order instrument, on the other hand, is an instrument that has the specific details of the payee and to anyone that the payee specifies or designates to pay (Cranston, 2009).
In this case, the check is a bearer instrument since the person who holds who happens to be Mr. Glenn has the power and rights in owning it and treats it in the way that he pleases. He now has the power to pay the debt he owes to his creditor, Carol. There is no proof to confirm the owner of the check as there is no reason for doubt in the beginning.
Did Glenn’s delivery of the check to Carol constitute a valid negotiation? Why or why not?
Glenn’s delivery of the check to Carol constituted a valid negotiation.
This is because laws on the business state that any form of negotiation necessitates the payee endorsing the instrument to any new holder with a signature. Carol did endorse the check on t…
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