In order for a transferee of a negotiable instrument to become a holder in due course, the transferee must give value, which may be making payment or promising to pay within a short amount of time. (TRUE/FALSE)

An agency by operation of law is formed when the principal accepts responsibility for the agent's unauthorized acts. (TRUE/FALSE)

Big and Best Insurance Co. ("BBI") offers its life insurance policies in many cities. In each city, BBI hires Chris to develop customers and sell life insurance policies.BBI and Chris have established an agency by agreement. (TRUE/FALSE)

A transferee of a negotiable instrument will always become a holder in due course. (TRUE/FALSE)