Graham was owed money by Hiram,and in order to repay Graham,Hiram endorsed a cheque that Greta had previously made out to Hiram as payment for some handiwork he provided to her.Graham has no knowledge of the circumstances or the arrangement between Hiram and Greta.What name describes Graham's status in relation to the cheque that is now in his possession?

Question

Quizplus · Accepted Answer

Graham is considered a "holder in due course" because he received the cheque in good faith, without knowledge of any defects or disputes regarding the transaction between Hiram and Greta, and is entitled to payment.

Graham Was Owed Money by Hiram,and in Order to Repay