What Is the Consequence of a Defense to a Negotiable

question 39

Multiple Choice

What is the consequence of a defense to a negotiable instrument being a personal defense?

• A) The instrument must be paid to any holder.
• B) The maker or drawer has personal liability on the instrument.
• C) The instrument must be paid despite the defense if the defense is being asserted against a holder in due course.
• D) The instrument must be paid to any party presenting it for payment.
• E) The defense is not effective against a holder of any kind.

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Definitions:

Breach

The violation or infringement of a law, agreement, or code of conduct.

Secret Commission

A payment made to an agent or a representative for facilitating a transaction or agreement, typically without the knowledge of some or all of the principal parties involved.

Commission Recovery

The process by which a salesperson, agent, or broker seeks to reclaim commission fees that were not paid as agreed upon in a transaction.

Dual Agency

A real estate arrangement where one agent represents both the buyer and the seller in a transaction.