Law assignment...... plz plz plz plz help me
This is a discussion on Law assignment...... plz plz plz plz help me within the Business Contracts & Partnerships forum, part of the BUSINESS & FINANCE LAW category; Enumerate the points of distinction between (i) a Holder & a Holder in due course (ii) a sale & an ...
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Enumerate the points of distinction between
(i) a Holder & a Holder in due course (ii) a sale & an agreement to sell. thanks in advance |
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Holder in due course, or (HDC) is a term used in law to refer to an innocent party who purchases a negotiable instrument for value without any apparent defect in the instrument nor any notice of dishonor. (Black's Law Dictionary 2nd Pocket ed. 2001 pg. 322). An HDC must purchase for value, meaning that he or she must pay for the property rather than simply being the beneficiary of a gift, although the value does not have to be 100% of the market value. Depending on the laws of the relevant jurisdiction, when a party sells a negotiable instrument with a non-apparent defect to an HDC, such as by selling them an instrument upon which another has a claim, that HDC takes good title to the property despite the competing claims of the other party unless the other party has a real defense, such as lack of capacity or fraud in the factum.
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