Asked by Alyssa Wolski on May 20, 2024
Verified
A holder in due course is free from the following personal defenses:
A) Lack or failure of consideration and breach of contract.
B) Fraud in the inducement in the underlying contract and breach of contract.
C) Lack or failure of consideration and fraud in the inducement in the underlying contract.
D) Lack or failure of consideration,breach of contract,and fraud in the inducement in the underlying contract.
E) Fraud in the essence,discharge of the party liable through bankruptcy,and material alteration of a completed instrument.
Personal Defenses
Legal defenses used in a lawsuit that are specific to the defendant, often relating to the contract's validity or terms.
Fraud in the Inducement
A deceitful act causing someone to enter into an agreement or contract by misrepresenting material facts or intentions.
Holder in Due Course
A party in possession of a negotiable instrument, such as a check or promissory note, acquired in good faith and thus protected against many defenses.
- Differentiating between types of defenses against claims on negotiable instruments.
Verified Answer
Learning Objectives
- Differentiating between types of defenses against claims on negotiable instruments.
Related questions
Rafe Signs a Check Payable to Shop Mart, Which Transfers ...
Duress That Causes the Transfer of a Negotiable Instrument ...
Defenses That May Not Be Asserted Against a Holder in ...
The Destruction or Mutilation of an Instrument Is Considered Cancellation ...
The Lack or Failure of Consideration Is a Personal Defense ...