Generally, defenses that could be raised in a breach of contact claim cannot be raised against a holder in due course.

Question

Quizplus · Accepted Answer

This is because a holder in due course takes the negotiable instrument free from most defenses that could be raised against the original party to the contract, as long as the holder meets certain requirements such as taking the instrument for value and in good faith.

Generally, Defenses That Could Be Raised in a Breach of Contact