Which of the following is true regarding the requirement that a party take an instrument for value in order to be considered a holder in due course?
A) The party must provide consideration.
B) The party must have provided a bargained-for promise.
C) The party must take the instrument in exchange for a promise that has already been performed.
D) The party must have begun performance on a promise and have provided consideration.
E) The party must have provided consideration or received the note as a gift.

Question

Quizplus · Accepted Answer

In other areas of the law, taking something for value usually means taking something with consideration, a bargained-for promise. However, the requirement here is more stringent: The party must take the instrument in exchange for a promise that has already been performed.

Which of the Following Is True Regarding the Requirement That