Rights of a Holder in Due Course Flashcards Preview

A Wiley Review Notes REG > Rights of a Holder in Due Course > Flashcards

Flashcards in Rights of a Holder in Due Course Deck (4)
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1
Q

A holder in due course

A

take an instrument free of personal defense BUT is subject to real defenses

2
Q

What are examples of personal defenses

A
Fraud
Breach (non-performance) of contract
Breach of Warranty
Unauthorized completion of incomplete instrument
Lack of Consideration
3
Q

What are examples of real defenses

A

Bankruptcy
Forgery
Material Alterations (change in date/amount/interest)
Extreme Durress
A minor that can disaffirm a contract
Infancy (unless exchanged for necessaries)

4
Q

If you knew of a lie when you purchased the note

A

you are not a HDC and can’t improve status

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