A holder in due course of a negotiable instrument
Answer and explanation
Correct answer: C. takes it free of earlier defects in title
- Step 1: The holder must have taken it in good faith, for value and without notice of any defect. Answer: takes it free of earlier defects in title. Why not the others: takes it subject to all prior claims against it: That is the position of an ordinary assignee. can only claim half the value of it: There is no such limit. must prove the original contract first: A holder in due course need not.
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