Asked by anthony triguero on Jun 09, 2024
Verified
In the development of the law of negotiable instruments, which of the following was not a step?
A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee.
B) Contractual rights became assignable to third parties.
C) The law of assignments changed to permit assignees to obtain greater rights than their assignors.
D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject.
Law of Negotiable Instruments
A branch of law that deals with the rights and duties of parties to documents like checks, bills of exchange, and promissory notes.
Assignable
Capable of being transferred or made over to someone else, typically referring to rights or property.
Holder in Due Course
A legal term referring to a person who has acquired a negotiable instrument in good faith for value and without notice of any defects in title.
- Appreciate the historical development of negotiable instruments law and its relevance to modern financial transactions.
Verified Answer
NB
Nicole Bires '20Jun 11, 2024
Final Answer :
C
Explanation :
The law of assignments traditionally holds that assignees cannot obtain greater rights than their assignors had. This principle ensures that the transfer of a contractual right does not unfairly disadvantage the obligor.
Learning Objectives
- Appreciate the historical development of negotiable instruments law and its relevance to modern financial transactions.