Which of the following would prevent Marcel from being a holder in due course?
A) A check written on April 14 is indorsed to Marcel on August 1.
B) A check written on April 14 is indorsed to Marcel on June 2.
C) Marcel knows there is a dispute between the original parties to the instrument.
D) All of the above.
E) Only (a) and (c).

Question

Quizplus · Accepted Answer

Option (a) alone would not prevent Marcel from being a holder in due course, as the time lapse between the date the check was written and the date it was indorsed to Marcel does not affect his status as a holder in due course.

Option (b) also does not prevent Marcel from being a holder in due course, as the time lapse between the date the check was written and the date it was indorsed to Marcel is reasonable.

However, option (c) is a valid reason for Marcel not to be considered a holder in due course, as he is aware of a dispute between the original parties to the instrument. Therefore, the correct answer is option E, Only (a) and (c).

Which of the Following Would Prevent Marcel from Being a Holder