Article 3 provides for real defenses that may be asserted by a third party. Which of the following is not a real defense?
A) fraud in essence
B) forgery
C) bankruptcy
D) lack of capacity

Question

Quizplus · Accepted Answer

Lack of capacity is generally considered a personal defense, not a real defense, under Article 3 of the Uniform Commercial Code. Real defenses are those that can be used against any holder, including a holder in due course, and typically include fraud in essence, forgery, and bankruptcy.

Article 3 Provides for Real Defenses That May Be Asserted