Which of the following qualification renders a person as a holder in due course of a negotiable instrument?
A)if he takes the negotiable instrument for value
B)if he is subject to claims and defenses against the transferor
C)if he is in possession of an instrument issued in his name
D)if he is in possession of an instrument issued in another's name

Question

Quizplus · Accepted Answer

A person becomes a holder in due course of a negotiable instrument if they take the instrument for value, in good faith, and without notice that there are any claims or defenses against it. Choices B, C and D are incorrect as they do not fulfill all the requirements for becoming a holder in due course.

Which of the Following Qualification Renders a Person as a Holder