In legal terms person who takes the instruments bonafide for value before it is overdue in good fait...........

Commercial and Business Laws Negotiable Instrument Act

In legal terms, person who takes the instruments bonafide for value before it is overdue, in good faith, is known as:

Holder in due course

Holder

Holder for value

None of the above

A holder in due course is one who receives the instrument:

a) for consideration;

b)without notice as to the defect in the title of the transferor; i.e. in good faith; and

c) before maturity.

Note –

a) His rights and title are independent on the transferor.

b) He has a right to demand and receive and also have a right to sue.

Submit Error