Multiple choice

Which of the following statements are correct?

In order that a person can be called a holder in due course, he must show i. that he is the drawer of the negotiable instrument ii. that he has obtained it without consideration iii. that he has obtained it before the maturity of the negotiable instrument iv. that he has obtained the negotiable instrument in good faith

  1. i and ii

  2. ii and iii

  3. iii and iv

  4. i and iv

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In order that a person can be called a holder in due course, he must show that he has obtained it before the maturity of the negotiable instrument and he has obtained the negotiable instrument in good faith.

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