In a nonconsumer transaction, a holder in due course takes the instrument free from:
A) all defenses of any party with whom he has not dealt, except for a limited number of defenses that are available against anyone, including a holder in due course.
B) the defense of incapacity, duress, or illegality that renders the obligation void.
C) no claims.
D) only personal claims.

Question

Quizplus · Accepted Answer

A holder in due course takes the instrument free from most defenses, except for "real" defenses that are universally applicable, such as fraud in the factum, incapacity, illegality, duress, etc.

In a Nonconsumer Transaction, a Holder in Due Course Takes