Question

The term 'holder' includes:

• A. The Payee
• B. The Bearer
• C. The Endorsee
• D. All of the above

Hint:

Under Section 8 of the Negotiable Instruments Act, 1881, a "holder" is anyone legally entitled to possess and recover payment under the instrument — including the payee, bearer, or endorsee.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept.
Section 8 of the Negotiable Instruments Act, 1881, defines a holder as a person entitled in his own name to the possession of a negotiable instrument (such as a cheque, bill of exchange, or promissory note) and to receive or recover the amount due thereon.

Step 2: Detailed Explanation.
According to this definition, the term "holder" includes: \[\begin{array}{rl} \bullet & \text{The Payee: The person to whom the instrument is originally made payable.} \\ \bullet & \text{The Bearer: The person in possession of an instrument that is payable to "bearer."} \\ \bullet & \text{The Endorsee: The person to whom the instrument is transferred by endorsement (signing and delivery).} \\ \end{array}\] All of these individuals are legally entitled to hold and claim payment under the instrument. Therefore, the definition of a "holder" encompasses all of them.
Step 3: Final Answer.
The term "holder" includes the payee, the bearer, and the endorsee — hence, the correct answer is (D) All of the above.