Skip to main content
Business LibreTexts

24.1: Introduction

  • Page ID
    25679
  • LEARNING OBJECTIVES

    After reading this chapter, you should understand the following:

    1. What a holder in due course is, and why that status is critical to commercial paper
    2. What defenses are good against a holder in due course
    3. How the holder-in-due-course doctrine is modified in consumer transactions

    In this chapter, we consider the final two questions that are raised in determining whether a holder can collect:

    1. Is the holder a holder in due course?
    2. What defenses, if any, can be asserted against the holder in due course to prevent collection on the instrument?
    • Was this article helpful?