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

Zaria Roberts

13 March, 14:43

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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Janae Salinas · 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.