In a nonconsumer transaction, a holder in due course takes the instrument free from:
A) only personal claims.
B) 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.
C) the defense of incapacity, duress, or illegality that renders the obligation void.
D) no claims.

Question

Quizplus · Accepted Answer

A holder in due course takes the instrument free from all personal defenses and claims, except for a limited number of real defenses such as fraud in the execution, forgery, or incapacity, which are available against anyone, including a holder in due course.

In a Nonconsumer Transaction, a Holder in Due Course Takes