An Assignment of a Negotiable Instrument Is Generally Prohibited

question 8

True/False

An assignment of a negotiable instrument is generally prohibited.

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Definitions:

Authorized

Given official permission for something to happen or approved as meeting certain standards.

Promoter

An individual or company that helps raise capital, organize, and start a business or event.

Liability

A legal responsibility or obligation, particularly in terms of debts or financial compensation for loss or damage caused by one's actions or inactions.

Preincorporation Contracts

Agreements entered into on behalf of a corporation before it is legally formed, for which the corporation may later assume liability.