Joseph Obtains a Draft That States as Follows: "Pay to the Order

question 53

Multiple Choice

Joseph obtains a draft that states as follows: "pay to the order of Joseph Daniels the sum of $1000." Joseph wants to negotiate this instrument to Jack Spratt to pay a debt owing to Jack. To negotiate this instrument Joseph must

• A) hand over the draft to Jack and get a receipt.
• B) endorse and present the instrument to Jack's bank.
• C) present the instrument to Jack's bank and have it accepted and then transfer it to Jack.
• D) indicate accepted on the draft and then deliver it to Jack.
• E) endorse and deliver the instrument to Jack.

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Definitions:

Corporate Debtors

Businesses that owe money to creditors and are responsible for repaying debt.

Reaffirmation Agreement

A legal document filed in bankruptcy proceedings where the debtor agrees to repay a portion or all of an outstanding debt.

Bankruptcy

A legal process allowing individuals or businesses that cannot meet their financial obligations to eliminate or repay their debts under the protection of the law.

Discharged

This term refers to the process by which an obligation or debt is formally nullified or released, such as when a bankruptcy court discharges a debtor's obligations.