Which of the Following Is True About the Requirement for a Holder

question 3

Multiple Choice

Which of the following is true about the requirement for a holder in due course to give value for an instrument?

• A) It can be met in any way that the consideration requirement can be met in an ordinary contract.
• B) It can be met only if the holder has paid cash for the instrument.
• C) In order to meet the requirement to give value, the value given must be comparable to the value of the instrument received.
• D) Acceptance of the instrument in payment of or as security for an antecedent claim meets the value requirement.
• E) An unperformed promise meets the value given requirement, so long as the promise is performed prior to the actual collection of any amount on the instrument.

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Definitions:

Physical Space

The tangible, real-world environment and area around individuals, which can affect behavior and interactions.

People

Human beings, either individually or collectively, considered within a social or cultural context.

Peace Sign

A symbol or gesture often used to represent peace, anti-war sentiments, or unity, consisting of a circle with three lines radiating downwards.

Gestures

Movements of the body, especially hands and arms, that convey ideas or meanings without using words.