Defenses that may be asserted against a holder in due course are called:
A) personal defenses.
B) real defenses.
C) special defenses.
D) holder in due course defenses.

Question

Quizplus · Accepted Answer

Defenses that may be asserted against a holder in due course are called real defenses. Real defenses are based on defects in the transaction itself, such as fraud in the inducement, duress, or incapacity. These defenses can defeat the holder in due course's ability to enforce the instrument against the party asserting the defense.

Defenses That May Be Asserted Against a Holder in Due