Simple English definitions for legal terms
Read a random definition: Memorandum
A holder in good faith is someone who takes something, like property or a piece of paper that represents money, without knowing that there is anything wrong with it. They believe that they are getting it legally and honestly.
A holder in good faith is a person who acquires property or an instrument without knowing that there is any problem with its ownership or title. This means that the person is not aware of any defects or issues that could affect their legal rights to the property or instrument.
These examples illustrate the concept of a holder in good faith because both John and Sarah acquired property without any knowledge of defects or issues that could affect their ownership rights. They acted in good faith and did not knowingly participate in any illegal or fraudulent activities.