Which of the Following Is True When an Instrument Fails

question 14

Multiple Choice

Which of the following is true when an instrument fails to meet the technical requirements necessary to qualify as a negotiable instrument?

• A) The instrument is still enforced as a negotiable instrument if it has been transferred to a holder in due course.
• B) The instrument is still enforced as a negotiable instrument if it has been accepted by a bank.
• C) The instrument is still enforced as a negotiable instrument if the holder can establish detrimental reliance based on a reasonable belief that the instrument qualified as a negotiable instrument.
• D) The instrument is may qualify as an enforceable contract.
• E) The instrument is null and void and of no use to the holder.