Mabel issues a negotiable promissory note to the order of Rachel.Rachel endorses the note to Batton,who takes it as a holder in due course.Batton gives the note to his brother,Albert,as a gift.In this situation:

Question

Quizplus · Accepted Answer

Since Batton took the note as a holder in due course and endorsed it to Albert, Albert will also acquire the status of a holder in due course and will acquire all the rights of Batton. Therefore, both option A and B are correct.

Mabel Issues a Negotiable Promissory Note to the Order of Rachel.Rachel