This document discusses key concepts relating to negotiable instruments and holders. It defines a holder as someone entitled to possession of a negotiable instrument in their own name and to receive payment from liable parties. A holder in due course is a holder who acquired the instrument for consideration, without defects in title, before maturity, completely and regularly on its face, and in good faith. A holder in due course has privileges including better title than the transferor, liability of prior parties, and estoppel against denying original validity or capacity to endorse.
This document discusses key concepts relating to negotiable instruments and holders. It defines a holder as someone entitled to possession of a negotiable instrument in their own name and to receive payment from liable parties. A holder in due course is a holder who acquired the instrument for consideration, without defects in title, before maturity, completely and regularly on its face, and in good faith. A holder in due course has privileges including better title than the transferor, liability of prior parties, and estoppel against denying original validity or capacity to endorse.
This document discusses key concepts relating to negotiable instruments and holders. It defines a holder as someone entitled to possession of a negotiable instrument in their own name and to receive payment from liable parties. A holder in due course is a holder who acquired the instrument for consideration, without defects in title, before maturity, completely and regularly on its face, and in good faith. A holder in due course has privileges including better title than the transferor, liability of prior parties, and estoppel against denying original validity or capacity to endorse.
The holder of a negotiable instrument means any person
entitled to the possession of the instrument in his own name and to receive or recover the amount due thereon from the liable thereto. They must be: Entitled to the possession of the instrument in his own name Entitled to receive or recover the amount due thereon from the parties liable thereto
Principles of Business Law
Holder in due course The holder in due course means any person who for consideration become the possessor of a negotiable instrument if payable to bearer, or the payee or indorsee thereof if payable, and without sufficient cause to believe that any defect existed in the title of the person from whom he derived his title He must be a holder He must be a holder for valuable consideration He must have become the holder of the negotiable instrument before its maturity He must take the negotiable instrument complete and regular on the face of it He must have become holder in good faith
Principles of Business Law
Privileges of a Holder in due course He gets a better than that of the transferor Privilege in case of inchoate stamped instruments Liability of prior parties Privilege in case of fictitious bills Privilege when an instrument delivered conditionally is negotiated Estoppel against denying original validity of instrument Estoppel against denying capacity of payee to endorse