Parties who acquire rights superior to those of the original owner are known as what?

The term "holders in due course" refers to individuals or entities that acquire rights to a negotiable instrument in a manner that grants them superior rights to the original owner. This concept is significant in commercial law and finance, particularly in the context of promissory notes, checks, and other negotiable papers.

Holders in due course obtain their instrument under specific conditions: they must take the instrument for value, in good faith, and without knowledge of any defects or claims against it. As a result, they are afforded certain protections that allow them to enforce the instrument free from many defenses that could be raised against the original payee. This principle helps facilitate transactions and encourages the circulation of negotiable instruments by providing a level of security for parties involved in financing and other business activities.

Understanding the rights and protections afforded to holders in due course is crucial in the context of funeral service education as it relates to financial transactions and contracts that may occur in the funeral industry.