The benefit to negotiability is that the holder of the instrument takes free of most of the obligor's possible defenses.

Question

Quizplus · Accepted Answer

This is true as per the legal principle of negotiable instruments, which states that a holder in due course takes the instrument free of most defenses that may exist between the original parties involved in the transaction. This provides greater protection to the holder of the instrument, making it more valuable and widely accepted in commercial transactions.

The Benefit to Negotiability Is That the Holder of the Instrument