Which of the following is true regarding simple contracts as compared to negotiable instruments?
A) Simple contracts are assigned to an assignee, while negotiable instruments are negotiated to a holder.
B) Simple contracts may be assigned to an assignee or negotiated to a holder while negotiable instruments may only be negotiated to a holder in due course.
C) Simple contracts may be assigned to an assignee or negotiated to a holder while negotiable instruments may only be negotiated to a holder.
D) Simple contracts may not be assigned while negotiable instruments may be negotiated to holder.
E) Simple contracts may be assigned to a holder while negotiable instruments may not be assigned or negotiated.

Question

Quizplus · Accepted Answer

Simple contracts can be assigned to an assignee, whereas negotiable instruments are specifically designed to be easily transferable or negotiated to a holder. This distinction highlights the ease of transfer and the legal protections afforded to holders of negotiable instruments compared to parties involved in simple contracts.

Which of the Following Is True Regarding Simple Contracts as Compared