Rikki sells shares in Sparkling Spa Company to Telsa. Rikki does not deliver the actual possession of the shares to Telsa, but gives her the key to a safety-deposit box in Unity Bank in which the stock certificates are locked. Presenting the key is

A. accession. B. constructive delivery. C. confusion. D. conversion.

Question

Business

Leila

7 May, 01:02

Rikki sells shares in Sparkling Spa Company to Telsa. Rikki does not deliver the actual possession of the shares to Telsa, but gives her the key to a safety-deposit box in Unity Bank in which the stock certificates are locked. Presenting the key is

A. accession. B. constructive delivery. C. confusion. D. conversion.

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Answers (1)

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Ruby Kim · Answer 1

B. constructive delivery

Explanation:

Based on the information provided within the question it can be said that Presenting the key is constructive delivery. This term refers to transferring a title by operation of law when the actual transfer is impossible. Such as is the case in this scenario, since the shares of Tesla stock are locked in a safety deposit box and are out of reach, Rikki cannot hand them the shares. Instead he hands them the key which they can then use to retrieve the shares.