Which of the following is true regarding simple contracts as compared to negotiable instruments?

A) Simple contracts are assigned to an assignee, while negotiable instruments are negotiated to a holder.
B) Simple contracts may be assigned to an assignee or negotiated to a holder while negotiable instruments may only be negotiated to a holder in due course.
C) Simple contracts may be assigned to an assignee or negotiated to a holder while negotiable instruments may only be negotiated to a holder.
D) Simple contracts may not be assigned while negotiable instruments may be negotiated to holder.
E) Simple contracts may be assigned to a holder while negotiable instruments may not be assigned or negotiated.

Question

Sierra Morin · Accepted Answer

Final Answer : A, Explanation :  Simple contracts can be assigned to an assignee, whereas negotiable instruments are specifically designed to be easily transferable or negotiated to a holder. This distinction highlights the ease of transfer and the legal protections afforded to holders of negotiable instruments compared to parties involved in simple contracts.

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