The "for-value" requirement for becoming a holder in due course is more stringent that the ________ requirement of ordinary contract law.
A)fraud
B)good faith
C)consideration
D)bad faith
E)detrimental reliance

Question

Quizplus · Accepted Answer

The holder in due course must take the negotiable instrument "for value." In other areas of law,taking something for value usually means taking something with consideration,a bargained-for promise.However,the for-value requirement is more stringent than consideration.The party must take the instrument in exchange for a promise that has already been performed.The Uniform Commercial Code explicitly excludes from "value" any promises that have not yet been performed.

The "For-Value" Requirement for Becoming a Holder in Due Course