Which of the Following Defenses Will Defeat a Holder in Due

question 53

Multiple Choice

Which of the following defenses will defeat a holder in due course?

• A) fraud in the inducement
• B) fraud as to the nature or essential terms of the paper
• C) ordinary contract defenses
• D) none of the above

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Definitions:

Clearly Defined

To be specified or described in precise or exact terms.

Mental Set

A psychological tendency to approach situations in a certain way based on previous experiences and perceptions.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used.

Administrative Processes

Procedures and practices involved in running an organization, including planning, organizing, staffing, directing, and controlling.