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Brian as evidence of Dennis good faith and interest in buying the car. Instead, Arnold used the
check to pay for the medical expenses of his wife in Brians clinic after Brian, a doctor, treated
her.
Is Brian a holder in due course (HIDC)? (1%)
(A) Yes, Brian is a HIDC because he was the payee of the check and he received it for services
rendered.
(B) Yes, Brian is a HIDC because he did not need to go behind the check that was payable to
him.
(C) No, Brian is not a HIDC because Dennis issued the check only as evidence of good faith and
interest in buying the car.
(D) No, Brian is not a HIDC because Brian should have been placed on notice: the check was
crossed in his favor and Arnold was not the drawer.
(E) No, Brian is not a HIDC because the requisite consideration to Dennis was not present.
SUGGESTED ANSWER: (D) No, Brian is not a HIDC because Brian should have been
placed on notice: the check was crossed in his favor and Arnold was not the drawer.
(Vicente R. de Ocampo & Company v. Gatchalian, 3 SCRA 566, 1961)