Asked by Tristen Peterson on Jun 14, 2024
Verified
The requirement that a holder in due course must take an instrument for value can be satisfied by receiving an instrument as a gift.
Holder in Due Course
A party that acquires a negotiable instrument in good faith and for value, thus obtaining certain rights free from previous defenses.
For Value
A legal consideration given as part of a contract or agreement, indicating that something of value was exchanged.
Instrument
A legal document formalizing an agreement or right, often used in financial transactions or legal proceedings.
- Familiarize yourself with the rights and liabilities of a Holder in Due Course (HDC), including the protective mechanisms available to them.
Verified Answer
MG
Matthew GaudetteJun 21, 2024
Final Answer :
False
Explanation :
The requirement that a holder in due course must take an instrument for value means that the holder must give consideration for the instrument, which does not include receiving it as a gift, as no value is given in exchange.
Learning Objectives
- Familiarize yourself with the rights and liabilities of a Holder in Due Course (HDC), including the protective mechanisms available to them.