When a person knowingly executes a negotiable instrument but is persuaded to do so because of false statements, the defense is a limited one.

Name: When a person knowingly executes a negotiable instrument but is persuaded to do so because of false statements, the defense is a limited one.
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Quizplus · Accepted Answer

The defense is not limited; it is considered a real defense known as "fraud in the inducement," which can be used against holders in due course.

When a Person Knowingly Executes a Negotiable Instrument but Is