Chris convinces Dion,who does not understand English,to sign a $1,000 note that Dion believes is an application for a credit card.Chris negotiates the note to EverLend Finance Company.Dion
A)can avoid payment on the note even if EverLend is an HDC.
B)can avoid payment on the note only if EverLend is a holder.
C)must pay EverLend the amount that it paid for the note.
D)must pay the note in full.

Question

Quizplus · Accepted Answer

Dion can avoid payment on the note even if EverLend is a holder in due course (HDC) because the note was signed under fraudulent circumstances, which is a defense against payment.

Chris Convinces Dion,who Does Not Understand English,to Sign a $1,000