Opal had a check for $294 made out to her.She indorsed it with her name and gave it to Daryl who, in return, agreed to paint her living room the next Saturday.In this case:
A) Daryl is not a holder.
B) Daryl is not a holder in due course.
C) Daryl has given value for the check.
D) the check is not negotiable.

Question

Quizplus · Accepted Answer

Daryl is not a holder in due course because he did not take the check for value, in good faith, and without notice of any claim or defense against it. He agreed to perform a service in the future, which does not constitute giving value at the time of the transaction.

Opal Had a Check for $294 Made Out to Her