I don't know what it is wtih this particular problem but i'm having a very difficult time with it. I've read it a couples times and I'm still unsure. I don't normally like asking for help but in this particular case i could really use it. Can anyone contribute Help is much appreciated. Thanks
Eve possesses an instrument that is "payable to bearer." She loses it. Fred finds it. On this instrument, Fred may
a) collect payment
b) not collect payment because he did not give value for it.
c) not collect payment, because he found it.
d) not collect payment because he is not the "bearer."
Can someone contribute. help fast. Person will get 5 points.
The answer is a) collect payment. I'm not sure there are such instruments still floating around but the old "bearer bonds" are such an example. Who ever holds the bonds and its "coupons" which are little payment vouchers for interest is entitled to the interest payments and the bond value should they surrender it.
a. Payable to Bearer is exactly the same as cash.
It is like a personal check made out to cash. Anyone can turn it in for payment.
Is Fred's last name Bearer? You lef t that out.
a -
Payable to bearer means whoever bears the check for payment. If Fred bears it than it is cashed to him.