Asked by Karina Goldberg on Jun 04, 2024
Verified
The lack or failure of consideration is a personal defense and can be used to avoid payment to an ordinary holder, an HDC, and a holder through an HDC.
Consideration
In contract law, it refers to something of value exchanged by the parties involved that induces them to enter into the agreement.
Personal Defense
Strategies, methods, or actions employed by an individual to protect themselves from harm.
- Absorb the information concerning the rights and protections available when facing claims on negotiable instruments.
Verified Answer
CJ
Cristal JosephJun 09, 2024
Final Answer :
False
Explanation :
The lack or failure of consideration is a personal defense and can be used to avoid payment to an ordinary holder, but it cannot be used against a holder in due course (HDC) or a holder through an HDC, as HDCs are protected against personal defenses.
Learning Objectives
- Absorb the information concerning the rights and protections available when facing claims on negotiable instruments.
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