Which of the following is true regarding Nate's rights in relation to the check?
A)As a holder in due course,Nate may demand payment from either Graciela,Annie,or Marney.
B)As a holder,Nate may demand payment from either Graciela,Annie,or Marney.
C)Nate may not demand payment from either Graciela,Annie,or Marney.
D)As a holder in due course,Nate may demand payment from either Graciela or Annie,but not Marney.
E)As a holder,Nate may demand payment from either Graciela or Annie,but not Marney.

Question

Quizplus · Accepted Answer

A)A party who receives a negotiable instrument as a gift or through mistake will be
a holder instead of a holder in due course.An HDC has more extensive legal rights,including freedom from competing claims and defenses.Because Nate received the check as a gift from Hiro Murakami,he does not qualify as a holder in due course.

Which of the Following Is True Regarding Nate's Rights in Relation