alleryStart learning →A holder in due course must acquire the instrument for consideration:
AAfter its dishonour
BBefore it became payable
CWithout any value
DAfter its maturity
Answer & Solution
Correct answer: B. Before it became payable
A holder in due course takes for value before the amount becomes payable and without notice of any title defect.
Keep practising Bills of Exchange and Promissory Notes
Browse all Bills of Exchange and Promissory Notes questions for CA Foundation, or explore more Accounting topics.
Related questions
What sets a demand promissory note apart from one payable at a fixed future date?What does a promissory note contain that an IOU lacks?A bill of exchange requires, at its inception, how many parties?A sum payable may still be 'certain' although it includes:A signs 'I promise to pay B or order Rs.500.' This is:A signed writing 'Mr B I.O.U Rs.1,000' is, under section 4:Where an instrument may be read as a promissory note or as a bill, the holder:A bill is drawn in London on a drawee resident in Mumbai. Under the Act it is: