Distinction between Assignment and Negotiation

Assignment literally means ‘transfer’ According to section 130 of the Transfer of Property Act, Every actionable claim can be transferred by means of a separate instrument in writing duly stamped and signed by the transferor. Negotiable instruments are also actionable claims and hence can be assigned.

Despite many similarities there are the differences between assignment and negotiation are as follows :


No.

Assignment


Negotiation
1
Assignment is effected under Transfer of Property Act, 1882
It is affected under Negotiable Instrument Act 1881.
2
Assignment requires written document duly signed.
It can be affected by simple by the transferor. Delivery or endorsement.
3
Defective title of the assignee
Defective title of the instrument does not affect holder in due course.

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