Charlene has possession of a check made out to her order which she received in payment for writing a manuscript for her publisher.Charlene is a holder in due course and the publisher cannot claim any "real" defenses to payment.Charlene has an unconditional right to be paid for the check.

Question

Quizplus · Accepted Answer

A holder in due course is someone who possesses a negotiable instrument (such as a check) and meets certain criteria, such as taking the instrument in good faith and for value. If Charlene meets these criteria, she would be considered a holder in due course and would have an unconditional right to be paid for the check, even if the publisher had certain defenses (such as fraud or breach of contract) against the original payee.

Charlene Has Possession of a Check Made Out to Her