Diego is the payee of a bearer instrument-a promissory note in the amount of $1,000. Emil offers to harvest Diego's field of alfalfa in October in ex?change for the note. Diego agrees and delivers the note to Emil. Emil is not an HDC of the note because he
A) was not the original payee on the note.
B) did not take the note without notice.
C) did not acquire the note in good faith.
D) did not give value for the note.

Question

Quizplus · Accepted Answer

Emil did not give value for the note because the exchange of services (harvesting the field) is not considered giving value in the context of becoming a holder in due course (HDC).

Diego Is the Payee of a Bearer Instrument-A Promissory Note