A forges his signature on a cheque made in favour of B,who then endorses it to the order of C.C then endorses the cheque to the order of D,who has no way of knowing that the cheque has been forged.In this case
A)D is the holder in due course of the cheque.
B)D is the payee of the cheque.
C)D is the endorser of the cheque.
D)D is not a holder in due course of the cheque.
E)D is the assignee of the cheque.

Question

Quizplus · Accepted Answer

D is considered a holder in due course if he received the cheque in good faith, without knowledge of the forgery, which is implied in the scenario provided.

A Forges His Signature on a Cheque Made in Favour