A Holder in Due Course Is Free from the Following

question 37

Multiple Choice

A holder in due course is free from the following personal defenses:

• A)Lack or failure of consideration and breach of contract.
• B)Fraud in the inducement in the underlying contract and breach of contract.
• C)Lack or failure of consideration and fraud in the inducement in the underlying contract.
• D)Lack or failure of consideration,breach of contract,and fraud in the inducement in the underlying contract.
• E)Fraud in the essence,discharge of the party liable through bankruptcy,and material alteration of a completed instrument.

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Definitions:

Rational

Based on or in accordance with reason or logic.

Logical

Pertaining to or characterized by clear, sound reasoning and thought processes.

Analytic

Pertaining to or proceeding by analysis (opposed to synthetic), involving the separation of a whole into its component parts to examine or determine their nature and relationship.

Systemic Solutions

Approaches to problem-solving that address the fundamental structure or underlying issues in a system, rather than only treating symptoms.