A holder may become the possessor or payee of an instrument even without consideration whereas a holder in due course is one who acquires possession for consideration.
You must be able to distinguish between a holder and a holder in due course:
(i) A holder may become the possessor or payee of an instrument even without consideration whereas a holder in due course is one who acquires possession for consideration.
(ii) A holder in due course as against a holder must become the possessor payee of the instrument before the amount thereon become payable.
(iii) A holder in due course as against a holder, must have become the payee of the instrument in good faith i.e., without having sufficient cause to believe that any defect existed in the transferor’s little.
You must be able to distinguish between a holder and a holder in due course:
(i) A holder may become the possessor or payee of an instrument even without consideration whereas a holder in due course is one who acquires possession for consideration.
(ii) A holder in due course as against a holder must become the possessor payee of the instrument before the amount thereon become payable.
(iii) A holder in due course as against a holder, must have become the payee of the instrument in good faith i.e., without having sufficient cause to believe that any defect existed in the transferor’s little.
Difference between holder and holder in due course
![Difference between holder and holder in due course]()
Reviewed by Hosne
on
12:47 PM
Rating:
