A party who receives a negotiable instrument as a(n) ________ or through mistake will be a holder instead of a holder in due course.

A) gift
B) value instrument
C) endorsed instrument
D) defective instrument
E) bearer instrument

Holder

A person or entity that possesses a negotiable instrument, such as a check or bond, and has the legal right to enforce it.

Gift

A voluntary transfer of property or funds without receiving anything in return or expectation of return.

Negotiable Instrument

A written promise or order to pay a specific amount of money that can be transferred to another party under certain conditions.