Multiple choice

X received a bearer cheque from Y for valuable consideration and in good faith. Actually, Y had stolen this cheque from Z. X would get title of

  1. a holder only

  2. a holder for value

  3. a holder in due course

  4. an endorsee
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Holder in due course - a person who has received a negotiable instrument in good faith and without notice that it is overdue, that there is any prior claim, or that there is a defect in the title of the person who negotiated it. Thus, X would get the title of holder in due course.

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