Question: Who is Holder in due course?
Answer:
Ø All holder in due course are holder are holder but all holder are not holder in due course.
Ø Transferee title is not affected by the defective title of the transferer
Ø Person who receive the money for value without knowing the defective title of the previous owner.
Question: What are the Four conditions for Holder in due course ?
Answer:
1) Without knowing the defective title of the previous owner.
2) For value
3) Good faith & with out negligence.
4) Before it become overdue
Question: What is Crossing?
Answer:
Ø It gives direction to the banker for payment.
Ø To give more protection for the payment
Ø It will not be paid over the counter.
Question: Who can cross a Cheque?
Answer:
Ø Drawer
Ø Any holder
Ø Banker
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