Question

D. The instrument is converted into order paper. 35. Which of the following is a "real" defense that is good against a holder in due course of a note? A. The maker of the note is 15 years old. B. The note was procured by the payee's threat to prosecute the maker for drug dealing. C. No consideration was given for the note. D. The maker was in a seriously delusional state when he completed the note (but had not been declared insane or institutionalized).

Answer 1

Answer A. The maker of the note is 15 year old.

As

Real defense includes being minor and being infant under State Law When a contract is entered with a minor it makes the contract void or voidable so as in present case with option the maker of the note is 15 year old so it is a case where a contract has been entered by a minor as he has signed the note being maker so it makes the contract void or voidable in such case if a real defense which can be used by the maker against a holder in due course and can escape the performance.

In all other option such events can not be considered as good real defense against holder in due course

Hence our answer is A. The maker of the note is 15 year old.

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