Explain how the position of a holder in due course compares to the position of an assignee of contractual rights.

The positions of a holder in due course and an assignee of contractual rights differ in the context of negotiable instruments, particularly in relation to their rights and protections. Here's a comparison of these two roles:

Holder in Due Course:

1. Negotiable Instrument: A holder in due course typically relates to negotiable instruments, such as promissory notes and bills of exchange, which are commercial documents that promise payment.
2. Good Faith and Value: To be considered a holder in due course, an individual or entity must acquire the instrument in good faith, for value, and without notice of any defects or defenses that could be raised against it. In essence, they receive the instrument without any knowledge of issues that might affect its enforceability.
3. Rights and Protections: A holder in due course enjoys certain rights and protections, including the ability to enforce the instrument against the party who issued it (the maker or drawer) and against prior parties in the chain of ownership (prior endorsers or transferors).
4. Clean Title: A holder in due course takes the instrument with a "clean" title, meaning that they can collect on it without being subject to any claims or defenses that the parties involved in previous transactions may have had against each other. This provides a high level of legal protection to the holder in due course.

Assignee of Contractual Rights:

1. General Contracts: An assignee of contractual rights is not limited to negotiable instruments but can pertain to a broader range of contracts and obligations. This includes assignments of rights and obligations in various contractual relationships.
2. Rights Subject to Defenses: Unlike a holder in due course, an assignee of contractual rights takes the rights and obligations of the original party subject to any defenses or claims that could have been raised against the assignor (the original party to the contract). In other words, the assignee steps into the shoes of the assignor and assumes their position.
3. Notice of Defenses: If there are any issues, disputes, or defenses that the original party could have asserted against the other party in the contract, the assignee is typically aware of these and is subject to them. This is because the assignee does not have the same level of protection as a holder in due course.
4. Enforcement Challenges: An assignee may encounter difficulties when enforcing the contract or collecting on obligations if the original party had disputes or claims against the other party in the contract.