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LSDefine

Simple English definitions for legal terms

due course, payment in

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A quick definition of due course, payment in:

Due Course, Payment In: When someone owes you money and they pay you at the right time, it's called payment in due course. This means they paid you when they were supposed to and didn't know of any problems with your right to receive the payment. It's like when you borrow a toy from a friend and promise to give it back in a week. If you give it back on time and your friend doesn't know of any problems with the toy, then you returned it in due course.

A more thorough explanation:

Due course, payment in: A payment made to the holder of a negotiable instrument at or after its maturity date, by the payor in good faith and without knowledge of any defects in the holder's title. This is also known as payment in due course.

Example 1: John owes Jane $500 and writes her a check. Jane deposits the check into her bank account. When the check clears, the bank pays Jane the $500. This is an example of payment in due course because the bank paid Jane in good faith and without knowledge of any defects in her title to the check.

Example 2: Sarah buys a used car from Tom and pays him with a cashier's check. Tom deposits the check into his bank account. A few days later, the bank informs Tom that the check was fraudulent and takes the $10,000 out of his account. This is not an example of payment in due course because the bank did not pay Tom in good faith and with knowledge of a defect in Sarah's title to the check.

Payment in due course means that the payor (the person making the payment) pays the holder of a negotiable instrument (such as a check or promissory note) in good faith and without knowledge of any defects in the holder's title. This protects the payor from being held responsible if there are any issues with the instrument's ownership or validity. The examples illustrate this concept by showing how payment in due course protects the payor from being held responsible for any defects in the holder's title.

due consideration | due-course holder

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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