________ apply to all parties, whereas ________ defenses do not apply to holders in due course.

A) Personal defenses, real
B) Real defenses; personal
C) Holder's rights; real
D) Personal rights; personal defenses
E) Personal defenses; holder's rights

Real defenses apply to all parties, including holders in due course, whereas personal defenses do not apply to holders in due course. Real defenses are fundamental flaws in the transaction that can be asserted against all holders, including those in due course, such as fraud in the factum, incapacity, illegality, or duress. Personal defenses, on the other hand, are valid only against parties with whom the defendant has personal dealings and not against holders in due course, who take the instrument free from such defenses.