Question

Under the UCC, a holder in due course is a holder who has given value for...

Under the UCC, a holder in due course is a holder who has given value for the instrument. Which of the following holders have given value for the instrument?

a.

Beth promises to paint the neighbor's house in exchange for a promissory note as an advance payment for the job.

b.

Steve gives a note and mortgage on his house to his attorney as a retainer to handle his pending divorce.

c.

Todd, a newspaper carrier, accepts a properly indorsed two-party check for the past two months of deliveries.

d.

All of these are correct.

Homework Answers

Answer #1

Todd, who is a newspaper carrier will be accepting a properly endorsed two party check for past two month of delivery will be treated as a holder who has given value for the instrument because he has accepted the to party cheque for past two months.he has become the holder in due course because he has provided value to that particular instrument

All the other options in relation to Beth and Steve giving the note are false.

Correct answer will be option (C).

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