Which statement is true regarding the requirement that a party take an instrument for value in order to be considered a holder in due course?
A)The party must have begun performance on a promise and have provided consideration.
B)The party must provide consideration.
C)The party must have provided a bargained-for promise.
D)The party must have provided consideration or received the note as a gift.
E)The party must take the instrument in exchange for a promise that has already been performed.

Question

Quizplus · Accepted Answer

A)In other areas of the law,taking something for value usually means taking something with consideration,a bargained-for promise.However,the requirement here is more stringent: The party must take the instrument in exchange for a promise that has already been performed.
B)In other areas of the law,taking something for value usually means taking something with consideration,a bargained-for promise.However,the requirement here is more stringent: The party must take the instrument in exchange for a promise that has already been performed.

Which Statement Is True Regarding the Requirement That a Party