Which of the Following Occurs When a Former Holder of an Instrument

question 6

Multiple Choice

Which of the following occurs when a former holder of an instrument has the instrument transferred back to him by negotiation or other means?

• A) Cancellation.
• B) Renunciation.
• C) Reacquisition.
• D) Recourse.
• E) Release.

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Definitions:

Consideration

In contract law, this is something of value that is exchanged between parties entering into a contract, essential for the agreement to be legally binding.

Gratuitous Promises

Promises made without expecting anything in return, often lacking legal enforceability unless supported by formalities like a deed.

Consideration

Something of value exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Legal Consideration

A value promised to another party in a contract as an inducement to enter into the contract, which must be present for the contract to be legally binding.