A holder in due course is subject to the defense of ________ if the maker of a note wrote it under a threat of force.
A)fraudulent inducement
B)infancy
C)duress
D)breach of warranty

Question

Quizplus · Accepted Answer

A holder in due course of a negotiable instrument takes the instrument free of all defenses and claims to the instrument except those that concern its validity.For example,a holder in due course of a note given in payment for goods may enforce the obligation in spite of the buyer's claim that the seller breached a warranty.However,if the maker of a note wrote it under duress,such as a threat of force,or was a minor,then even a holder in due course is subject to the defenses of duress or infancy.

A Holder in Due Course Is Subject to the Defense