A person is never entitled to enforce an instrument if that person is not the owner of the instrument or if that person is in wrongful possession of the instrument.

Question

Quizplus · Accepted Answer

Under certain circumstances, a person not in rightful possession or not the owner of the instrument may still enforce it if they qualify as a holder in due course, which requires meeting specific criteria under the Uniform Commercial Code (UCC) or equivalent laws, such as acquiring the instrument in good faith and without knowledge of its theft or fraud.

A Person Is Never Entitled to Enforce an Instrument If