Question 18 of 24
Q.Distinguish between Negotiability and Assignability. (Any 3)
Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2023Subjective· 3mImportance★★★★★
75% · 18/24 Questions
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Start your 14-day free trial to unlock the full solution →Negotiation transfers a negotiable instrument by delivery/endorsement and can give the transferee a better title, while assignment needs a written deed and notice and passes no better title than the assignor had.
| Basis | Negotiability | Assignability |
|---|---|---|
| Mode of transfer | By mere delivery (bearer instrument) or by endorsement and delivery (order instrument) | Only by a written and signed assignment deed |
| Title of transferee | A holder in due course can get a better title than the transferor | An assignee gets no better title than the assignor (title subject to all defects) |
| Notice to debtor | No notice to the debtor is required | Notice of assignment must be given to the debtor |
| Consideration | Consideration is presumed | Consideration must be proved |
| … |
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