Maxim received a cheque that was specially endorsed to him under several conditions.Alexa then acquired that same cheque from Maxim under the same conditions,and Tori then acquired it from Alexa with those same conditions.Albert was the last and final person to acquire the cheque which he received from Tori with the same conditions attached.If none of the individuals listed above were involved with fraudulent or illegal activity,which of them other than Maxim were holders in due course?

Question

Quizplus · Accepted Answer

Alexa, Tori and Albert all acquired the cheque with the same conditions attached and none of them were involved in fraudulent or illegal activities. Therefore, they all qualify as holders in due course. Maxim cannot be a holder in due course as he was the one who received the cheque originally and therefore knew of any conditions attached to it.

Maxim Received a Cheque That Was Specially Endorsed to Him