The question (15 marks)
Distinguish a holder from a holder in due course, and explain, with reference to decided cases, the rights which the latter enjoys. (15 marks)
MU Module 4, head 4.1; pack chapters on the definition of a negotiable instrument and on holder and holder in due course.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 4 · Negotiable Instruments and the Debt Recovery Tribunals of Law of Banking and Negotiable Instruments.
Authorities you will need
- Lachmi Chand v. Madanlal Khemka
- Singheshwar Mandal v. Gita Devi
- Nunna Gopalan v. Vuppuluri Lakshminarasamma
- Negotiable Instruments Act 1881, ss. 8, 9, 20, 36, 41, 42, 53, 58, 59, 60, 78, 81, 118, 121, 122, 130
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.