Which of the Following Is False with Regard to a Holder

question 32

Multiple Choice

Which of the following is False with regard to a holder in due course?

• A) A holder in due course cannot be an immediate party.
• B) A holder in due course is in a better position to be paid by the drawer or maker of the instrument than is an immediate holder, because there are fewer defences against his claim for payment.
• C) A person cannot be a holder in due course if he knew the instrument had been obtained by the payee by fraud.
• D) A person cannot be a holder in due course if he acquired the instrument in bad faith; e.g., he tricked the person into giving him the cheque.
• E) A holder in due course is the same as the drawee or acceptor.

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Definitions:

Spare Tyre

A colloquial term for an additional tyre carried in a vehicle for use in the case of a flat tyre or blowout.

Sub-Goals

Intermediate or smaller goals that serve as manageable steps toward achieving a larger goal or objective.

Flat Tyre

A deflated pneumatic tire, which can cause the rim of the wheel to ride on the tire tread or the ground potentially resulting in loss of control of the vehicle or irreparable damage to the tire.

Common Heuristic

A widely used mental shortcut or rule of thumb that simplifies decision-making and problem-solving processes.