Question about checks. Help is much appreciated. It was tough for me so can someone please contribute. Thanks?

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.

It depends on what "may" means. Payable to bearer means it is like cash money. If Fred found $100, may be keep it (and spend it)?

He physically could (he is the bearer), but it would be stealing. Legally, he has to make a reasonable effort to return it to the rightful owner. In most places, that means reporting it to the police, or advertising it.

The correct legal answer is "c".

a. is correct. If an instrument is "payable to bearer", it is also known as a "bearer instrument" and can thus be redeemed by the person possessing it.