Question

One who, in good faith and without knowledge of defect, pays valuable consideration for a note before it is due is referred to as:a receiver in trust.an endorser in blank.a holder in due course.an assignor.

Answer 1

The correct answer to the following question is A holder in due course.

Step-by-step explanation:

A holder in due course is said to be a legal term , which describes about the person who has in good faith obtained a negotiable instrument and he or she has exchanged something valuable for that instrument, but the person is unaware of the fact that there might be some defect in the instrument like in title of person who is negotiating that contract.