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Which Position Offers the Most Security: Being a Holder in Due

Question 24

Multiple Choice

Which position offers the most security: being a holder in due course of a cheque or an assignee under an assignment of a debt,and why?


A) the holder in due course because he or she are aware in advance of any issues between the drawer of the cheque and the payee
B) a holder in due course because he or she can enforce the cheque regardless of any issues between the drawer and payee
C) an assignee because the assignee steps into the shoes of the assignor
D) an assignee because the assignee can enforce the assignment regardless of any issues between the assignor and debtor

Correct Answer:

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