to be a holder in due course 4 requirements must be met:
1. there must be a negotiable instrument from the holder
2. the holder must take the instrument for value
3. must be taken by the holder in good faith
4. holder must take instrument for value
the evidence that provides that Kane was holder in due course when
grace gave him the check to pay for the cows that her son bought,
Kane thought that there wasn't going to be any problems with the
check, and Kane wasn't aware of the agreement between Mr. kroll
and his mother. Because it is held that Grace had the power to
void/stop the check at any time, and that it is concluded that the
verbal agreement between Grace and her son was rescinded, Mr.
Kane is still in good faith as he didn't know it was taken back. The
ambiguity present is that the deal was between Kane and Mr. Kroll
not Kane and grace. Grace agreed to pay for them in the thought that
Gerald would pay her back. She should take the cows and make him
work off the debt. As this reading goes, grace didn't do the most
ethical thing in the world by cancelling the check.
Kubasek, N. K., Browne, M. N., Dhooge, L. J., Herron, D. J., &
Barkacs, L. L. (2020). Dynamic Business Law (fifth). New York, Ny:
Mcgraw-Hill Education.
