In order for a person to be a holder in due course of a negotiable instrument,it must be true that the paper must have been acquired for a(n):
A) mala fide consideration.
B) unlawfully contingent consideration.
C) premeditated consideration.
D) valuable consideration.

Question

Quizplus · Accepted Answer

For a person to be a holder in due course of a negotiable instrument, the paper must have been acquired for valuable consideration, which is a legal term that refers to any payment made in exchange for a negotiable instrument that is not illegal or fraudulent. This means that the consideration must be real and have some value, such as cash, goods, or services rendered. Mala fide or bad faith consideration, unlawfully contingent consideration, or premeditated consideration would not qualify as valuable consideration under the law.

In Order for a Person to Be a Holder in Due