Which of the following defences is available to the drawer of a cheque who is being sued by a holder in due course of a negotiable instrument?
A) the drawer's signature was a forgery
B) the cheque was obtained through breach of contract
C) the payee was negligent
D) the cheque was obtained through misrepresentation
E) A and B

Question

Quizplus · Accepted Answer

A forgery of the drawer's signature is a valid defense against a holder in due course, as it means the drawer never authorized the instrument. Other defenses like breach of contract or misrepresentation are personal defenses and not valid against a holder in due course.

Which of the Following Defences Is Available to the Drawer