Explain Holder in due course according to 3-4 Marks.
Hi Shivangi, let's split this term into two parts and understand the meaning.
Holder: A person who is holder or possessor of the bill
In due course: in normal time or in the expected amount of time
Thus, we can say that a person who has received or holds any negotiable instrument in good faith for good time is known as holder in due course. It implies that the people who are holding bill of exchange for its normal due time without having the knowledge of any falsification for the instrument issued or for the previous instruments.
Hope this clarifies your doubt!!!
Holder: A person who is holder or possessor of the bill
In due course: in normal time or in the expected amount of time
Thus, we can say that a person who has received or holds any negotiable instrument in good faith for good time is known as holder in due course. It implies that the people who are holding bill of exchange for its normal due time without having the knowledge of any falsification for the instrument issued or for the previous instruments.
Hope this clarifies your doubt!!!