The claims and defenses to payment of an instrument that go to the validity of the instrument are called _____.
A) real defenses
B) personal defenses
C) claims in recoupment
D) claims to an instrument

Question

Quizplus · Accepted Answer

There are some claims and defenses to payment of an instrument that go to the validity of the instrument. These claims and defenses are known as real defenses. They can be used as reasons against payment of a negotiable instrument to any holder, including a holder in due course (or a person who has the rights of a holder in due course).

The Claims and Defenses to Payment of an Instrument That