Which of the following qualifications renders a person a holder in due course of a negotiable instrument?
A) he takes the negotiable instrument for value
B) he is subject to claims and defenses against the transferor
C) he is in possession of an instrument issued in his name
D) he is in possession of an instrument issued in another's name

Question

Quizplus · Accepted Answer

To qualify as a holder in due course of a negotiable instrument, the person must take the instrument for value, meaning they have given something of value in exchange for the instrument. They must also acquire the instrument in good faith and without notice of any claims or defenses against it. Possession of an instrument issued in one's name or in another's name does not determine whether one is a holder in due course.

Which of the Following Qualifications Renders a Person a Holder