Asked by
Lillian Lundquist
on Nov 01, 2024
Verified
To be a holder in due course,the person in possession of the instrument must first give consideration and then be an indorser.
Holder in Due Course
A legal term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights above the original parties to the instrument.
Consideration
The value promised, given, or performed that motivates parties to enter into a contract, being essential for its validity.
Indorser
A person who endorses a negotiable instrument.
- Absorb the essentials and requisites to be established as a holder in due course.
Verified Answer
KM
Learning Objectives
- Absorb the essentials and requisites to be established as a holder in due course.