A Holder Who Is Neither a Holder in Due Course

question 40

True/False

A holder who is neither a holder in due course nor a holder through a holder in due course is subject to every defense, just as though the instrument were not negotiable.

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Definitions:

Mark-up

Additional pricing on goods’ cost aimed to cover running expenses and secure profit.

Cost

The amount of money required to purchase something or the expense incurred to produce something.

Selling Price

The amount for which a good or service is sold to the customer.

Outstanding Balance

Represents the total amount of money owed on a loan, credit card, or any debt, remaining to be paid.