When a party receives a negotiable instrument as a gift or acquires it through mistake,the party will become a(n)________.

Question

Quizplus · Accepted Answer

A holder in due course must take the negotiable instrument "for value." In other words,the party must suffer an out-of-pocket loss.When a party receives a negotiable instrument as a gift or acquires it through mistake,the party will become a holder instead of a holder in due course.

When a Party Receives a Negotiable Instrument as a Gift