Endorsement of Negotiable instrument followed by delivery 1. Transfers the property in instrument to…
Under s.50 NI Act, indorsement followed by delivery transfers the property in the instrument and the right of further negotiation, and the indorsement may exclude or…
Choose your answer
Endorsement of Negotiable instrument followed by delivery
1. Transfers the property in instrument to endorsee
2. Transfers the right of further negotiation to the endorsee
3. May exclude or restrict the right of further negotiation by endorsee
4. May merely constitute the endorsee as an agent
Answer and explanation
Correct answer D
Under s.50 NI Act, indorsement followed by delivery transfers the property in the instrument and the right of further negotiation, and the indorsement may exclude or restrict that right or merely constitute the indorsee an agent, so all four statements hold: "1, 2, 3 and 4".
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