A. What defenses can be used against a holder in due course? b. What defenses cannot be used against a holder in due course?


a. Real defenses are used to avoid payment to all holders, including HDCs. Real defenses include infancy to the extent that it is a defense to a simple contract; any other incapacity, duress, or illegality that renders the obligation void; fraud in the execution; discharge in insolvency proceedings; any other discharge of which the holder has notice when he takes the instrument; unauthorized signature; and fraudulent alteration.
b. Personal defenses can only be used against an ordinary holder, not an HDC. Personal defenses include breach of contract; failure or lack of consideration; illegality that does not render the transaction void; setoff or counterclaim; nondelivery of an instrument; unauthorized completion; theft of a bearer instrument; fraud in the inducement; discharge of which the HDC does not have notice; payment without obtaining surrender of the instrument; lack of authority of a corporate officer, agent, or partner; and duress, undue influence, mistake, misrepresentation, or incapacity that does not render the transaction void.

Business

You might also like to view...

Which of the following theories measures attitude toward the act of buying, rather than only the attitude toward the product itself?

A) The theory of cognitive dissonance B) The theory of reasoned action C) The balance theory D) The theory of trying

Business

______ is an extremely important part of the interview because it can directly impact positive outcomes such as salary and benefits that come with the job.

a. Patience b. Friendliness c. Trust d. Compassion

Business

Greg Provenzo owns and runs a Blockbuster video store. Greg is implementing a drive-thru rental process that is the same as you would find at a fast-food restaurant. Customers can pick-up and drop-off their videos without leaving their cars. Greg's new system has become so popular that Videos Plus, a competitor down the street, is attempting to recreate Greg's video drive-thru rental process. Greg's system is an example of a _________.

A. Supply chain power. B. First-mover advantage. C. Business processing strategy. D. Business intelligence.

Business

An advantage of outsourcing IT services is that it _____.

A. reduces license and maintenance fee B. ?increases control over IT operations C. ensures the security of trade secrets D. lengthens implementation cycles

Business