A transfer of an instrument where the transferee can never acquire better rights than the transferor is called a(n):
A) indorsement.
B) negotiation.
C) novation.
D) invalidation.
E) assignment

Question

Quizplus · Accepted Answer

This describes an assignment, where the transferee (the person receiving the instrument) can never acquire better rights (claim or interest in the instrument) than the transferor (the person giving the instrument). Indorsement and negotiation are interchangeable terms that refer to the transfer of a negotiable instrument from one party to another. Novation involves substituting one party in a contract with another, completely discharging the original party's obligations. Invalidation refers to rendering something legally invalid or ineffective.

A Transfer of an Instrument Where the Transferee Can Never