A holder in due course takes the instrument free of all:
A) defenses and claims to the instrument.
B) defenses and claims to the instrument except those which concern its validity.
C) defenses and claims to the instrument except those which concern its negotiability.
D) defenses and claims to the instrument including defenses of duress or infancy.

Question

Quizplus · Accepted Answer

A holder in due course of a negotiable instrument takes the instrument free of all defenses and claims to the instrument except those that concern its validity. For example, a holder in due course of a note given in payment for goods may enforce the obligation in spite of the buyer's claim that the seller breached a warranty.

A Holder in Due Course Takes the Instrument Free of All