Question

Business Class

18. To be a Holder in Due Course (HDC), a transferee must take the instrument:

a. for value;

b. in good faith;

c. without notice of a defect in or defect to the instrument;

d. all of the above.

e. none of the above.

19. A Holder in Due Course takes the instrument free of:

a. all defenses;

b. personal defenses;

c. universal defenses;

d. all of the above.

20. Most defenses to payment of a negotiable instruments are_____________defenses.

a. personal;

b. universal;

c. constitutionl;

d. all of the above.

Answer 1

Ans 18 - (D) All of above

It is requirement of negotiable instrument holder in due course that it is in exchange of value, in honesty in fact with fair dealing and without notice of anything.

Ans 19 -(B)Personal defenses

As personal defenses are only effective against ordinary holders not holder in due course.

Ans 20-( A)Personal

Mostly all defences are personal not universal as universal defence not always apply.