If an Instrument Is Acquired as Part of a Corporate

question 6

True/False

If an instrument is acquired as part of a corporate purchase of assets,the holder will have the rights of an HDC.

---

Definitions:

Law of Agency

A legal principle governing the relationship between a principal and their agent, where the agent is authorized to act on behalf of the principal in contractual or business transactions.

Apparent Authority

A situation where a person appears to have the authority to act on behalf of an organization, leading others to reasonably believe they have such power.

Implied Authority

The power assumed by a person that is reasonably necessary to carry out his or her expressed powers.

Reasonable Opportunity

A circumstance or condition that allows for a fair and plausible chance to pursue an action, achieve a goal, or resolve a problem, based on logical or practical considerations.