A defense that can only be asserted by the principal debtor is called a:
A) real defense.
B) subrogated defense.
C) personal defense.
D) joint defense.

Question

Quizplus · Accepted Answer

A personal defense is one that can only be asserted by the principal debtor, as it is based on their personal circumstances or relationship with the original creditor. Real defenses, on the other hand, can be asserted against all parties, including holders in due course. Subrogated and joint defenses are not standard terms used in this context.

A Defense That Can Only Be Asserted by the Principal