Which of the following is true of an assignment?
A) It is considered as a negotiation under Article 3 of the Uniform Commercial Code (UCC).
B) The transferee is known as a holder in due course.
C) Defenses to the enforcement of the contract against the assignor can be raised against the assignee.
D) Only negotiable instruments can become assignments.

Question

Quizplus · Accepted Answer

Defenses to the enforcement of the contract against the assignor can be raised against the assignee, meaning that the assignee is not immune to claims or defenses that the debtor may have had against the assignor. A) An assignment is not considered a negotiation under Article 3 of the UCC, which deals with negotiable instruments. B) A holder in due course is a specific term used in Article 3 of the UCC to refer to a purchaser of a negotiable instrument for value, without notice of any defects or defenses. D) Not only negotiable instruments can become assignments, as any contractual right or claim can potentially be assigned.

Which of the Following Is True of an Assignment