Class 11 Finance Important Chapter 16 Payment in Due Course, Holder and Holder in Due Course Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Finance Important Solutions and select need one. AHSEC Class 11 Finance Additional Notes English Medium Download PDF. HS 1st Year Finance Important Solutions in English.
Class 11 Finance Important Chapter 16 Payment in Due Course, Holder and Holder in Due Course
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Banking Important Notes in English for All Chapters, You can practice these here.
Payment in Due Course, Holder and Holder in Due Course
Chapter: 16
| IMPORTANT QUESTION AND ANSWER |
Answer the Following Question:
1. What is payment in due course?
Ans: Payment made according to the apparent tenor of the instrument, in good faith and without negligence to a rightful possessor.
2. Who is a holder?
Ans: A person in possession of a negotiable instrument entitled to receive or recover payment in his own name.
3. Define holder in due course.
Ans: A person who obtains a negotiable instrument for value, in good faith, before maturity, without knowing of defects in the title.
4. Explain the conditions that must be fulfilled to become a holder in due course.
Ans: To be a holder in due course, a person must possess the instrument, it must be regular and complete, obtained for valuable consideration, obtained before maturity, and without knowledge of defects in title.
5. What rights does a holder in due course enjoy under the Negotiable Instruments Act?
Ans: He holds a better title, purges prior defects, can transfer better title, is entitled to sue all prior parties, and is protected against denial of the instrument’s validity or signatures.
6. Define payment in due course and its essential features.
Ans: Payment made as per the instrument’s terms, in good faith, without negligence, to a rightful possessor. Essential features include good faith, apparent tenor compliance, no negligence, and entitlement of payee.
7. Discuss the legal effect of estoppel related to a holder in due course.
Ans: Prior parties cannot deny the validity of the instrument, capacity of payee to endorse, or signatures when dealing with a holder in due course.
8. What is the difference between a holder and a holder in due course?
Ans: A holder merely possesses the instrument and is entitled to payment, but a holder in due course has additional protections like better title, immunity from prior defects, and greater enforceability.
Fill in the Blanks:
1. Payment in due course must be made in accordance with the ________ tenor of the instrument.
Ans: Apparent.
2. A ________ must obtain the instrument for valuable consideration before it becomes payable to be a holder in due course.
Ans: Holder.
3. The holder in due course obtains the instrument without having sufficient cause to believe any ________ existed in the title.
Ans: Defect.
4. A holder in due course can transfer a ________ title to subsequent holders.
Ans: Better.
5. Payment made to a person in possession of an instrument, who is reasonably entitled to receive it, is called ________ in due course.
Ans: Payment.
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