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Question
Distinguish between Negotiability and Assignability.
Distinguish Between
Solution
| No. Basis of Difference | Negotiability | Assignability |
| Nature of title | In case of negotiation, the transferee can get a better title than that of transfer or provided he takes the instrument for bonafide and for value. | In the case of an assignment, the assignee [Transferee] cannot get a better title than that of the assignor. [Transferor]. |
| Ownership | In case it is payable to Bearer – mere delivery. In case it is payable in order – Endorsement and delivery and easy to transfer. |
The transfer of legal title takes place by means of a separate document and after complying with the necessary legal formalities. |
| Notice | Notice is not necessary for the holder to claim the payment from debtors. | The assignee must give notice to the debtors. |
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Negotiability and Assignability
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