Defenses that may not be asserted against a holder in due course are referred to as personal (or contractual) defenses.

Name: Defenses that may not be asserted against a holder in due course are referred to as personal (or contractual) defenses.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Personal or contractual defenses, such as lack of consideration, non-performance of conditions, or fraud in the inducement, cannot be used against a holder in due course, who takes the instrument for value, in good faith, and without notice of any defect.

Defenses That May Not Be Asserted Against a Holder in Due