In which case would the holder in due course not receive payment?
A)Nineteen-year-old Dylan signs a promissory note to pay $500 to Alice and hands her the note.
B)Ricardo forges Amberly's name to a promissory note and sells it to Divine.
C)Yoko borrows money from Carole and signs a promissory note to repay the amount with interest.
D)All of these are correct.

Question

Quizplus · Accepted Answer

In case B, the promissory note is a result of forgery, and therefore, the holder in due course (Divine) is not entitled to receive payment. In cases A and C, the promissory notes are valid, and the holders in due course (Alice and Carole) are entitled to receive payment.

In Which Case Would the Holder in Due Course Not