Question

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

• A. Payee
• B. Transferee
• C. Drawer
• D. Endorser

Answer 1

Answer:

B. Transferee

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.