Asked by Benjamin Sutton on May 17, 2024
Verified
List the requirements a party must meet in order to be considered a holder in due course.
Holder in Due Course
A term that refers to a party who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.
Requirements
Conditions or capabilities needed for something to be achieved, such as the specifications for software or the qualifications for a job.
- Delve into the personal and real defenses concerning negotiable instruments, and understand their relationship with the status of a holder in due course.
Verified Answer
MF
Muhammad FarrukhMay 21, 2024
Final Answer :
In order to be considered a holder in due course,the following requirements must be met: a)The party must be a holder of a complete and authentic negotiable instrument; b)The holder must take the instrument for value; c)The holder must take the instrument in good faith; and d)The holder must take the instrument without notice of defects.
Learning Objectives
- Delve into the personal and real defenses concerning negotiable instruments, and understand their relationship with the status of a holder in due course.