Which of the following best describes the shelter principle?
A) It is a rule giving the holder rights of holder in due course.
B) It is a claim a party being sued makes against the party suing.
C) It is a rule that protects a holder from being sued.
D) It is a rule which protects the holder from judicial punishment.

Question

Quizplus · Accepted Answer

The shelter principle allows a person who acquires an instrument from a holder in due course to obtain the rights and privileges of a holder in due course, even if they themselves do not meet the requirements.

Which of the Following Best Describes the Shelter Principle