The "Shoe Rule" Does Not Apply When _____

question 3

Multiple Choice

The "shoe rule" does not apply when _____

• A) there is a sale of a negotiable instrument to a holder in due course.
• B) doing so would maintain the obligation of the obligor.
• C) statute or public policy forbids the assignment.
• D) the contract itself precludes assignment.
• E) the assignor must make known his intention to transfer the rights to the third person.

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Definitions:

Adverse Possession

The process by which one can legally claim ownership of property by occupying it for a certain period, under certain conditions, without the permission of the owner.

Life Tenant

An individual who has the right to use or occupy property during their lifetime, but cannot sell or transfer the property.

Fee Simple

The most extensive interest in real estate available, granting the owner full possession and control, subject only to governmental restrictions.

Easement

A non-possessory right to use or enter onto another's property for a specified purpose, without owning it.