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Under Section 14, 'negotiation' of an instrument means its transfer:
ATo a person so as to constitute that person the holder of the instrument
BFor safe custody
COnly by registration
DOnly to a bank
Answer & Solution
Correct answer: A. To a person so as to constitute that person the holder of the instrument
Negotiation is the transfer of an instrument to a person so as to make him the holder; bearer instruments pass by delivery, order instruments by indorsement and delivery.
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