If a person promises to perform but has not yet done so, no value has been given, and that person is not an HDC.

Name: If a person promises to perform but has not yet done so, no value has been given, and that person is not an HDC.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

In order to be considered a holder in due course (HDC), a person must have given value for the instrument (such as paying for it). If they have only promised to perform but have not yet done so, they have not given value and thus cannot be an HDC.

If a Person Promises to Perform but Has Not Yet