In which of the following situations is Andy a holder in due course?

Andy sells goods to Beth. As payment Beth endorses a properly signed, valid looking cheque from Charles to Beth. Andy takes the cheque knowing that it is a forgery.

Andy sells goods to Beth. As payment Beth endorses a handwritten note from Charles to Beth saying I promise to pay you soon. Andy has no knowledge of Charles or his dealings with Beth.

Andy sells goods to Beth. As payment Beth endorses a signed cheque from Charles to Beth. The cheque is difficult to read and the signature badly smudged. Andy has no knowledge of Charles or his dealings with Beth.

Andy sells goods to Beth. As payment Beth endorses a properly signed, valid looking cheque from Charles to Beth. Andy has no knowledge of Charles or his dealings with Beth.

Andy sells goods to Beth. As payment Beth endorses a properly signed, valid looking cheque from Charles to Beth. Andy knows that Beth sold Charles a car that did not belong to her.

Submit