By the concept of ____________, a transferee of a negotiable instrument can acquire greater rights than the transferor had.
A)holder in due course
B)assignment
C)commercial utility
D)sight drafts

Question

Quizplus · Accepted Answer

The concept described in the question is that of a holder in due course. A holder in due course is someone who acquires a negotiable instrument for value, in good faith, and without notice of any defects in the instrument or defenses against it. Such a holder acquires greater rights than the transferor had, including immunity from certain defenses and claims that could be raised against the transferor. The other choices (assignment, commercial utility, and sight drafts) are not directly related to this concept.

By the Concept of ____________, a Transferee of a Negotiable