Question

A issues a bill to the order of B. Later B, without indorsing the bill, transfers for a consideration said bill to C. The following except one are valid effects of the transfer

A. C acquires the right to have the indorsement of B
B. The bill is merely assigned not negotiated
C. C has become a holder for value
D. The transfer vests in C such title as B had thereon in the instrument

Answer 1

The transfer of the bill from B to C, without endorsement, allows C to hold the same title as B in the instrument, making C a holder for value.

Step-by-step explanation:

In this scenario, when B transfers the bill to C without endorsing it, it's considered an assignment rather than negotiation, as indicated in Option B. However, despite the lack of endorsement, C becomes the holder for value (Option C) by acquiring the instrument through a valid consideration.

The crucial aspect is that the transfer to C gives them the same title or rights that B possessed in the instrument (Option D). While C doesn't automatically acquire the right to have B's endorsement (Option A), they do obtain the rights and title from B concerning the bill.