Negotiable Instruments: Key Concepts and Definitions
Classified in Law & Jurisprudence
Written on in English with a size of 2.74 KB
State the Difference Between a Negotiable Instrument and a Contract of Assignment
Negotiation
Negotiation implies the transfer of a negotiable instrument that takes place to make the transferee the holder of the instrument. It has effect by mere delivery in the case of a bearer instrument and endorsement and delivery in the case of an order instrument. The transferee has the right to sue the third party in his/her own name.
Assignment
Assignment alludes to the transfer of ownership of the negotiable instrument, in which the assignee gets the rights to receive the amount due on the instrument from the prior parties. It has effect by a written document duly signed by the transferor. The assignee does not have the right to sue third parties in his... Continue reading "Negotiable Instruments: Key Concepts and Definitions" »