Asked by Walter Enrique on Apr 30, 2024
Verified
The ________ is a concept that if an item is transferred from one person to another, the transferee acquires all the rights the transferor had in the item.
A) principle shelter rule
B) shelter principle
C) transferee/transferor principle
D) transferor rule
E) holder in due course rule
Shelter Principle
The principle which holds that when an item is transferred, the transferee acquires all the rights the transferor had to the item.
Transferee
A person or organization that acquires property, rights, or interests from someone else via a lawful transfer method.
Transferor
The party that transfers rights, property, or interests to another, known as the transferee.
- Identify when and how legal principles, such as the shelter principle, apply in cases involving negotiable instruments.
Verified Answer
JS
Jennifer SerranoMay 06, 2024
Final Answer :
B
Explanation :
The shelter principle is the correct concept, which states that a transferee acquires all the rights in an item that the transferor had, allowing the transferee to step into the shoes of the transferor.
Learning Objectives
- Identify when and how legal principles, such as the shelter principle, apply in cases involving negotiable instruments.