The major difference between a negotiable instrument and a contract right is that D. An assignee of a contract right is in a better position than the transferee of a negotiable instrument. C. A negotiable instrument is property, but a contract right is not. B. Certain transferees of a negotiable instrument take free of defenses assertable against their transferors, but assignees step into the shoes of their assignors. A. A negotiable instrument is transferable, but a contract right is not. Buyer purchased land from Seller, giving a down payment and a note secured by a mortgage. When Buyer defaulted, Seller threatened foreclosure. Consequently, Buyer agreed with Third Party to sell the land. Seller agreed to this arrangement. At the closing, Third Party paid Seller the amounts in arrears, executed a new note secured by a mortgage, and caused title to be transferred. Seller canceled Buyer's note and mortgage. This transaction is A. A divisible contract. B. A novation. C. A third-party beneficiary contract. OD. An accord and satisfaction Peg and Mary entered into a contract in which Mary agreed to sell a famous painting to Peg. To show her good faith, Peg gave Mary a promissory note as security. They did not fill in the amount but agreed to complete it later for not more than $7,500 after it was appraised. Mary did not give up possession of the painting, but completed the promissory note for $15,000 and sold it to Sarah for $12,000. C. Sarah is a holder in due course for $12,000. D. Sarah is a holder in due course for $15,000. A. Sarah is not a holder in due course because unauthorized completion is a real defense. B. Sarah is a holder in due course for $7.500