In which of the following ways does an assignee from a simple contract differ from a holder of a negotiable instrument?
A) A holder has greater rights than the transferor.
B) A holder has less rights than the transferor.
C) An assignee has greater rights than the transferor.
D) An assignee has less rights than the transferor.
E) An assignee and a holder's rights are equivalent.

Question

Quizplus · Accepted Answer

A holder of a negotiable instrument can have greater rights than the transferor due to the principle of "holder in due course," which allows them to take the instrument free of certain defenses. An assignee, however, generally steps into the shoes of the assignor and cannot have greater rights than the assignor.

In Which of the Following Ways Does an Assignee from a Simple