If fraud was used to induce a person to sign a negotiable instrument, the injured person may use this as a personal defense against a holder in due course.

Name: If fraud was used to induce a person to sign a negotiable instrument, the injured person may use this as a personal defense against a holder in due course.
Brand: Quizplus
Rating: 4.8 (48 reviews)

Question

Quizplus · Accepted Answer

Fraud in the inducement is a personal defense and cannot be used against a holder in due course, who takes the instrument free of personal defenses.

If Fraud Was Used to Induce a Person to Sign