Advantage of a holder in due course


Question: The advantage of a holder in due course over a simple holder of an instrument is that the holder in due course can:

A. Transfer the instrument to others, thus using it as a substitute for money.

B. Collect on the instrument even if it has been forged.

C. Collect punitive damages from a party who wrongly does not pay a negotiable instrument.

D. Collect on the instrument if the maker or drawer asserts a personal defense.

E. Endorse the instrument "without recourse" thus limiting his liability.

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Business Law and Ethics: Advantage of a holder in due course
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