Sprock is a holder in due course on an instrument issued by Klingon.Which of the following defenses could be successfully raised by Klingon?

Question

Quizplus · Accepted Answer

Forgery is a valid defense because if the instrument was not actually issued by Klingon, then it is not a legally binding obligation. However, prior payment, breach of contract, and lack of consideration are not valid defenses against a holder in due course, as they are considered to have acquired the instrument in good faith and for value.

Sprock Is a Holder in Due Course on an Instrument