Asked by Faith DeNoyer on May 20, 2024
Verified
Set forth the eight real defenses and explain their significance.
Real Defenses
Legitimate legal defenses that can be asserted regardless of the contract's validity, often used in negotiating or contesting payment obligations.
- Acquire knowledge on real and personal defenses relevant to negotiable instruments.
Verified Answer
MD
Michael DimasMay 21, 2024
Final Answer :
Real defenses are as follows:
1. Infancy (being below the legal age of consent), to the extent that it makes a contract void.
2. Duress, to the extent that it makes a contract void.
3. Lack of legal capacity, to the extent that it makes a contract void.
4. Illegality of the transaction, to the extent that it makes a contract void.
5. Fraud in the factum.
6. Discharge through insolvency proceedings (bankruptcy).
7. Forgery.
8. Material alteration.
The significance of real defenses is that they apply to all parties, including holders in due course.
1. Infancy (being below the legal age of consent), to the extent that it makes a contract void.
2. Duress, to the extent that it makes a contract void.
3. Lack of legal capacity, to the extent that it makes a contract void.
4. Illegality of the transaction, to the extent that it makes a contract void.
5. Fraud in the factum.
6. Discharge through insolvency proceedings (bankruptcy).
7. Forgery.
8. Material alteration.
The significance of real defenses is that they apply to all parties, including holders in due course.
Learning Objectives
- Acquire knowledge on real and personal defenses relevant to negotiable instruments.
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