A Holder Cannot Become a Holder in Due Course to an Instrument

question 25

True/False

A holder cannot become a holder in due course to an instrument that is forged or altered.

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Definitions:

Title

A legal term referring to a rightful ownership of an asset or property, or the document that proves such ownership.

True Owner

The individual or entity that has the lawful possession, title, and rights over a property or asset, regardless of any other claims.

Validly Accept

The proper agreement to an offer according to predefined rules, which results in a binding contract.

Legal Acceptance

The formal acknowledgment by the party to whom an offer has been made, agreeing to the terms of the offer, resulting in a binding contract.