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NIkisha Bhagat   16 November 2019

In commercial law, a holder in due course is someone who accepts a negotiable instrument in a value-for-value exchange without reason to doubt its legitimacy. A holder in due course acquires the right to make a claim for the instrument's value against its originator and intermediate holders. Even if one of these parties passed the instrument in bad faith or in a fraudulent transaction, a holder in due course may retain the right to enforce it.

G.L.N. Prasad (Retired employee.)     17 November 2019

Search in google for better understanding. details and case laws. For understanding in a simple manner whoever is in possession of any instrument for bonafide consideration and without suspicion on such instruments, the origin is a holder in the course.  That means even if the instrument is fake or forged, a holder in due course gets protection against such proceedings if his dealings for receipt of that instrument is bonafide.

Dr J C Vashista (Advocate)     18 November 2019

No facts posted for this question paper.

What is the advise of your tutor?

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