Ranjit Currently Has Possession of a Cheque That Was Created

question 54

Multiple Choice

Ranjit currently has possession of a cheque that was created by Maura. Although Maura created that cheque on January 1, the instrument is dated June 1. The cheque originally was payable to Nora. The cheque now bears endorsements by Nora and Shelley. Maura, Nora, Shelley, and Ranjit are the only parties that have dealt with the cheque. Which of the following statements is TRUE?

• A) Ranjit cannot be a holder in due course if he received the cheque when it was in bearer form.
• B) Ranjit cannot be a holder in due course unless Shelley was a holder in due course.
• C) Ranjit may be a holder in due course even if he did not personally provide consideration to anyone.
• D) Maura may be the drawee of the cheque.
• E) Ranjit cannot be a holder in due course if today's date is July 1.

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Definitions:

Garage

A building or secured area designed for the storage of vehicles, typically part of a house or situated on residential property.

Bailment for Reward

A legal relationship where personal property is transferred from one party (bailor) to another (bailee) for a specific purpose, with compensation involved.

Exclusivity of Possession

The legal right granted to a tenant or lessee to use and possess a property to the exclusion of others, including the landlord under certain agreements.

Common Law

A set of laws that are not codified but are based on previous judicial decisions and court precedents.