Fraud in the inducement is a:
A) limited defense not available against a holder in due course.
B) universal defense available against all holders.
C) limited defense available against all holders.
D) universal defense not available against a holder in due course.

Question

Quizplus · Accepted Answer

Fraud in the inducement is considered a limited defense, meaning it cannot be used against a holder in due course. A holder in due course is a party who has acquired a negotiable instrument in good faith and for value, and thus is protected against certain defenses that could be raised by the original parties.

Fraud in the Inducement Is A