Asked by Hloni Nkolanyane on Jun 07, 2024
Verified
When a party receives a negotiable instrument as a gift,the party will be a holder instead of a holder in due course.
Negotiable Instrument
A document that promises the payment of a certain sum of money, either upon request or at a predetermined time, with the name of the individual responsible for paying included on the document.
Gift
Something voluntarily transferred by one person to another without expectation of payment or something in return.
- Gain an understanding of the role and relevance of the holder in due course within negotiable instruments legislation.
Verified Answer
MV
Marlitza VictorJun 12, 2024
Final Answer :
True
Explanation :
A holder in due course must take the negotiable instrument "for value." In other words,the party must suffer an out-of-pocket loss.Therefore,when a party receives a negotiable instrument as a gift,the party will be a holder instead of a holder in due course
Learning Objectives
- Gain an understanding of the role and relevance of the holder in due course within negotiable instruments legislation.
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