In general, the defenses available in a dispute over a contract can be raised against holders in due course.

Question

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Holders in due course have special protection under the Uniform Commercial Code (UCC), which generally allows them to take the instrument free from many defenses that could be raised against the original parties to the contract. This protection is designed to facilitate the free transferability of negotiable instruments.

In General, the Defenses Available in a Dispute Over a Contract