P obtains a cheque drawn by M by way of gift Here P is a ........

Commercial and Business Laws Negotiable Instrument Act

P obtains a cheque drawn by M by way of gift. Here P is a:

Holder in due course

Holder for value

Holder

None of the above

The "holder" of a promissory note, bill of exchange or cheque means any person entitled in his own name –

a) to the possession thereof; and

b) to receive or recover the amount due thereon from the parties thereto.

His rights and title are dependent on the transferor. He has a right to demand and receive but cannot sue.

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