Question

A document that allows legally and freely assignable, saleable or transferrable by delivery is known as ---.

• A. liquidity
• B. perpetuity
• C. transferability
• D. negotiability

Answer 1

Answer:

D. negotiability

Features of NI's:

Negotiability

• A document that allows legally and freely assignable, saleable or transferrable by delivery known as negotiability 

• Negotiability allows the passing of its ownership from one party to another by it's physical transfer

• The person to who transfer a negotiable instrument is known as Transferor 

• The person to whom a negotiable instrument is transferred is known as Transferee. 

Free Transfer

• It can be very easily transferred from one person to another either by mere delivery.