Asked by Patricia Garcia on Apr 24, 2024
Verified
According to the shelter principle,if a holder cannot attain holder-in-due course status,the holder cannot acquire the rights and privileges of a holder in due course even if the item is being transferred from a holder in due course.
Shelter Principle
A legal rule in property law that protects the rights of a subsequent purchaser if the initial transfer to the seller was valid.
Status
The legal condition or position of an individual or entity in relation to others or the law.
- Comprehend the shelter principle and its implications for subsequent holders.
Verified Answer
RP
Regina Puma-atMay 02, 2024
Final Answer :
False
Explanation :
According to the shelter principle,if a holder cannot attain holder-in-due course status,the holder can acquire the rights and privileges of a holder in due course if the item is being transferred from a holder in due course.
Learning Objectives
- Comprehend the shelter principle and its implications for subsequent holders.