Which of the following is true of real defenses?
A)Real defenses can be used against holders,but not holders in due course.
B)Anyone who has a real defense is required to pay an instrument.
C)Real defenses can be used against everyone,including holders in due course.
D)Real defenses include breach of contract,failure or lack of consideration,fraud in the inducement,and payment.

Question

Quizplus · Accepted Answer

Real defenses are a set of defenses that can be used to invalidate the enforceability of a negotiable instrument against all holders, including holders in due course. These defenses are recognized universally and include forgery, fraud in the execution, material alteration, discharge in bankruptcy, minority of the signer, and certain other conditions that render the instrument void or voidable under law.

Which of the Following Is True of Real Defenses