Holder and Holder-In-Due-course

Holder:
• Person who is entitled in his own name to the possession of the
instrument and to receice or recover the amount due thereon,
from the parties thereto[ section 8]
• Agent holding an instrument for his principal is not a holder
Holder-in-Due-course:
According to section 9,
1. Person who for the consideration become the possessor of a
negotiable instrument if payable to bearer
2. The payee or endorsee thereof , if payable to order, before its
maturity, and without having sufficient causes to believe that
any defect existed in the title of the person from whom the
derived his title
 Holder vs Holder-in-due-course
• Entitlement -Own name vs possession with considerstion
• Consideration- No consideration vs valuable consideration
• Maturity- before as well as after maturity vs only before
maturity
• Title- Holder in due course has better title than that of
transferor
• Right to recover amount- preceding party vs any prior party