Which of the Following Is True Regarding How the Obligations

question 55

Multiple Choice

Which of the following is true regarding how the obligations of sellers/lessors and buyers/lessees are determined?

• A) Obligations of parties are determined by the terms the parties outline in agreements, but not by custom or rules outlined by the UCC.
• B) Obligations of parties are determined by the rules outlined by the UCC, but not by terms the parties outline in agreements or by custom.
• C) Obligations of parties are determined by terms the parties outline in agreements and rules outlined by the Uniform Commercial Code, but not by custom.
• D) Obligations of parties are determined by the rules outlined by the UCC and by custom, but not by terms the parties outline in agreements.
• E) Obligations of parties are determined by the terms the parties outline in agreements, custom, and rules outlined by the UCC.

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Definitions:

Negotiation

The process by which parties in dispute or potential agreement discuss their differences and attempt to reach a mutually acceptable resolution.

Holder

In finance and legal terms, an individual or entity that possesses a negotiable instrument, like a check or bond, and has the right to enforce it.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Bearer

A person in possession of an instrument, such as a check or bond, that is not made out to a specific payee.