Asked by Roman Bracciale on Jun 10, 2024
Verified
In a nonconsumer transaction, a holder in due course takes the instrument free from:
A) only personal claims.
B) all defenses of any party with whom he has not dealt, except for a limited number of defenses that are available against anyone, including a holder in due course.
C) the defense of incapacity, duress, or illegality that renders the obligation void.
D) no claims.
Nonconsumer Transaction
A transaction that primarily involves goods, services, or property intended for business or commercial purposes, rather than personal, family, or household use.
Personal Claims
Legal claims relating to or affecting a person's private rights, often involving compensation for personal harm or damage.
Defenses
Legal arguments and strategies used by a defendant to challenge the validity of the plaintiff's claims.
- Acquire knowledge on the privileges and safeguards a holder in due course enjoys over a normal holder.
Verified Answer
JR
Jacques RostollJun 11, 2024
Final Answer :
B
Explanation :
A holder in due course in a nonconsumer transaction takes the instrument free from most defenses, except for "real" defenses such as forgery, fraud in the execution, material alteration, discharge in bankruptcy, minority of the signer, and certain others that are universally applicable.
Learning Objectives
- Acquire knowledge on the privileges and safeguards a holder in due course enjoys over a normal holder.