Negotiable instruments can sometimes convey better rights than existed between the original parties.

Question

Quizplus · Accepted Answer

Negotiable instruments operate under the principle of "holder in due course," which allows a person who acquires the instrument in good faith and for value to obtain certain rights exceeding those of the original parties, including freedom from many defenses that could be raised against the original party.

Negotiable Instruments Can Sometimes Convey Better Rights Than Existed Between