When Tina was fifteen years of age, she gave Sam a negotiable note payable five years later. Sam negotiated it to Neighborhood Bank, who became a holder in due course. Tina may assert her age as a defense against Neighborhood Bank to disaffirm the payment.

Question

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A minor (person under the age of 18 years) or mental incompetent need not honor a negotiable instrument if it was given in payment for a contract that the minor or mentally incompetent may disaffirm on the grounds of minority or incompetency. This rule is true even if the instrument comes into the hands of a holder in due course.

When Tina Was Fifteen Years of Age, She Gave Sam