In the Development of the Law of Negotiable Instruments, Which

question 38

Multiple Choice

In the development of the law of negotiable instruments, which of the following was not a step?

• A) Centuries ago, contract rights to the payment of money were not assignable because the contractual promise ran to the promisee.
• B) Contractual rights became assignable to third parties.
• C) The law of assignments changed to permit assignees to obtain greater rights than their assignors.
• D) The concept of a holder in due course developed, which allowed certain good faith transferees who gave value to acquire the right to be paid, free of most of the defenses to which an assignee would be subject.

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Definitions:

Hedged Item

An asset, liability, firm commitment, or highly probable forecast transaction identified by an entity to manage risks through a hedging relationship.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Hedge Accounting

An accounting method that recognizes the offsetting position of a hedge in the financial statements to reduce the volatility of earnings.

Foreign Currency Transactions

Deals or business activities that involve the exchange of currencies from different countries, impacting financial statements due to exchange rate changes.