Overview

If properly negotiated (transferred), 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 how to transfer negotiable instruments and what it means to be a holder in due course.

Learning objectives

This week, our activities, content, and assignments will help you 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 outline the rights and interests acquired in each

Weekly plan

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 the assigned texts and work through any other required resources
Submit the homework on Canvas by Tuesday at 6:00 pm