Legal Definitions - good delivery

Definition: Good delivery refers to the basic conditions required for the transfer of a security. These conditions include:

• The certificate is in good condition
• The certificate belongs to the person transferring it
• The certificate is properly endorsed
• Any legal documents necessary for negotiability must accompany the certificate

For example, if someone wants to transfer ownership of a stock certificate to another person, they must ensure that the certificate is in good condition, that they are the rightful owner of the certificate, that the certificate is properly endorsed, and that any necessary legal documents are included with the certificate.

Another example of good delivery is when a seller delivers a product to a buyer. The product must be in good condition, the seller must be the rightful owner of the product, and any necessary documents, such as a bill of sale, must be included with the product.

Overall, good delivery ensures that the transfer of ownership is legal and valid.