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

Question

Quizplus · Accepted Answer

In order to be a holder in due course, the individual must have acquired the negotiable instrument for valuable consideration, meaning they exchanged something of value (money, goods, services, etc.) for the instrument. Mala fide (bad faith) consideration would refer to a fraudulent or illegal transaction, and contingent and premeditated consideration are not relevant to the concept of being a holder in due course.

In Order for a Person to Be a Holder in Due