Overview

If properly negotiated, a negotiated instrument can be sold or assigned to others. This is significant because a person, at a minimum, acquires the same rights the transferor had to the goods or payment. In some cases, where the holder becomes a “holder in due course,” they can acquire more rights than the previous possessor. In this chapter, we discuss what it means to be a holder vs. a holder in due course and the rights and interests acquired.

Learning objectives

This week, our activities, content, and assignments will help you to be able to do the following:

Identify when a negotiable instrument has been properly negotiated such that it can be sold or assigned to others
Discuss what it means to be a holder vs. a holder in due course and the rights and interests acquired in each
Be able to assess whether a person acquires greater title than that held by their predecessor as a holder in due course

Weekly roadmap

Here's everything you need to do and remember for the week. These items will all appear, in order, in the Module for this week.

Read this week's chapter
Be ready to discuss assigned cases and questions