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(a) What is a homer in due course?(b) What rights does a holder in due course e
(a) What is a homer in due course?(b) What rights does a holder in due course e
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2025-06-21
15
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问题
(a) What is a homer in due course?
(b) What rights does a holder in due course enjoy?
选项
答案
(a) Section 29 of the Bills of Exchange Ordinance defines a holder in due course as a holder who has taken a bill, complete and regular on the face of it, under the following conditions, namely:
that he became the holder of it before it was overdue, and without notice that it had been previously dishonoured, if such was the fact;
that he took the bill in good faith and for value, and that at the time the bill was negotiated to him he had no notice of any defect in the title of the person who negotiated it.
(b) Section 38 of the Bills of Exchange Ordinance provides that holder in due course can:
sue on the bill in his own name.
hold the bill free from any defect of title of prior parties, as well as from mere personal defences available to prior parties among themselves, and may enforce payment against all parties liable on the bill.
get a good and complete title to the bill after negotiation; and get a valid discharge for the bill after payment.
Section 20 (2) of Bills of Exchange Ordinance provides that if an inchoate instrument after completion is negotiated to a holder in due course, it shall be valid and enforceable.
Section 64 (1) of Bills of Exchange Ordinance provides that alteration of a bill does not affect a holder in due course. Where the alteration is not apparent, he may enforce payment according to its "original tenor".
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