Melinda Is the Holder in Due Course of a Cheque

question 55

Multiple Choice

Melinda is the holder in due course of a cheque drawn on Tyson's bank account. She therefore believes that she is entitled to receive payment from Tyson. Tyson, however, believes that he has a good defence to her claim. That will be TRUE if Tyson can prove the defence of

• A) no authority.
• B) non- delivery of a completed cheque.
• C) drunkenness.
• D) failure of consideration.
• E) non est factum.

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Definitions:

Sold Shares

Refers to the act of transferring ownership in a corporation's stock from one party to another in exchange for money or other compensation.

Dividend

A portion of a company's earnings that is distributed to shareholders as a return on their investment.

Trading Portfolio

A collection of financial assets held by an individual or institution primarily for the purpose of short-term trading and profit.

Fair Value

Fair value is an estimation of the price at which an asset or liability could be bought or sold in an orderly transaction between market participants at the measurement date.