What do we call parties who acquire rights superior to those of the original owner?

The term for parties who acquire rights superior to those of the original owner is "holder in due course." This concept is particularly significant within the context of negotiable instruments and is rooted in principles designed to protect individuals who acquire these instruments under certain conditions.

A holder in due course is someone who takes a negotiable instrument for value, in good faith, and without notice of any defects or claims against it. This status allows the holder to enforce the instrument against the original issuer despite any issues that may exist with the instrument or the underlying transaction. For instance, if a check is transferred to a holder in due course, that individual can pursue payment from the drawer of the check even if the drawer had previously raised disputes regarding the validity of the transaction.

Other choices do not fit this definition: an owner simply indicates possession or rights without the special protections afforded by the status of holder in due course. A trustee manages property for the benefit of another party but does not inherently acquire superior rights over the original owner's rights. A beneficiary, while receiving benefits from a trust or will, similarly does not gain superior rights to the property itself compared to the original owner. Therefore, "holder in due course" is the correct term for parties obtaining rights that overshadow those of