Question

1. Although a promise to give value in the future is a valid consideration to support a contract, it does not constitute _______ value to make the promisor an HDC.
2. A holder takes an instrument for value only to the extent that the promise has been ______. When an instrument is purchased at a bankruptcy sale, the holder will not be a(n) ______. A holder who does not act in the process of acquiring the instrument cannot be an HDC. The good faith requirement applies only to the ______. A person who takes a negotiable instrument from a thief may become an HDC if the person acquired the instrument in good faith and had no reason to be of the transaction.

Answer 1

Answer:

1. sufficient

2. performed; HDC; holder

Explanation:

The holder in due course which is popularly referred to as the HDC is a person who has been given an instrument that is negotiable and not overdue in any form. The instrument has also been given in good faith which shows that the instrument is in good working condition. The HDC is eligible to purchase the instrument in a value for value exchange form.