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    Question

    A person who receives a negotiable instrument in good

    faith for valuable consideration is known as
    A Holder Correct Answer Incorrect Answer
    B Payee Correct Answer Incorrect Answer
    C Holder of value Correct Answer Incorrect Answer
    D Holder in due course Correct Answer Incorrect Answer

    Solution

    Under Section 9, “Holder in due course”.—“Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or indorsee thereof, if 1[payable to order,] before the amount mentioned in it became payable, and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.

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