Which of the following is false regarding the elements a party must meet in order to be considered a holder in due course?
A)The party must be a holder of a complete and authentic negotiable instrument.
B)The holder must take the instrument without notice of defects.
C)The holder must take the instrument for value.
D)The holder must either pay for the instrument or receive it as a gift.
E)The holder must take the instrument in good faith.

Question

Quizplus · Accepted Answer

A)A party who receives a negotiable instrument as a gift or through mistake will be
a holder instead of an HDC.
B)A party who receives a negotiable instrument as a gift or through mistake will be a holder instead of an HDC.
C)A party who receives a negotiable instrument as a gift or through mistake will be a holder instead of an HDC.
D)A party who receives a negotiable instrument as a gift or through mistake will be a holder instead of an HDC.
E)A party who receives a negotiable instrument as a gift or through mistake will be a holder instead of an HDC.

Which of the Following Is False Regarding the Elements a Party