Opalina asks Paolo,who does not understand English,to sign what Opalina says is an application to open a bank account.In fact,the "application" is a note.If sued on the note by an HDC
A)Paolo must pay the note.
B)Paolo's best defense would be fraud in the execution.
C)Paolo's best defense would be fraud in the inducement.
D)Paolo's best defense would be mistake.

Question

Quizplus · Accepted Answer

Paolo's best defense would be fraud in the execution because he was deceived as to the nature of the instrument he signed. He believed he was signing an application to open a bank account, but in fact, he signed a note with the intention of being bound on the note's terms. This is a classic example of fraud in the execution.

Opalina Asks Paolo,who Does Not Understand English,to Sign What Opalina