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A holder in due course will get protected from earlier defect of
no consideration
conditional delivery
unlawful means
all of the above
- Option 1: No consideration:
A holder in due course (HIDC) can still enforce a negotiable instrument even if no consideration was given for the prior transfer. This offers protection from lack of consideration defects.
- Option 2: Conditional delivery:
An HIDC holds the instrument free of any conditions affecting delivery, thus can claim the payment, regardless of any prior conditions imposed.
- Option 3: Unlawful means:
If there was an illegality in the initial acquisition, an HIDC is not affected by this defect and can enforce the instrument.
- Option 4: All of the above:
An HIDC is protected from defects such as no consideration, conditional delivery, and unlawful means.
By: santosh ProfileResourcesReport error
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