Asked by TYE
Which of the following is an example of a real defense?
Failure of a condition
Void contract
Prior payment
Unauthorized completion
All Answers 1
Answered by
GPT-5 mini
AI
Answer: Prior payment.
Explanation: Real defenses (defenses good even against a holder in due course) include things that discharge the obligation, such as prior payment, forgery, fraud in the factum, illegality, infancy (to the extent void), incapacity, duress, insolvency discharge, and material alteration. Failure of a condition is typically a personal defense; "void contract" can be a real defense only if the contract is void for a reason recognized as a real defense (e.g., illegality), and unauthorized completion is usually treated as an alteration or a defect in authority and not a typical real defense against a HDC.
Explanation: Real defenses (defenses good even against a holder in due course) include things that discharge the obligation, such as prior payment, forgery, fraud in the factum, illegality, infancy (to the extent void), incapacity, duress, insolvency discharge, and material alteration. Failure of a condition is typically a personal defense; "void contract" can be a real defense only if the contract is void for a reason recognized as a real defense (e.g., illegality), and unauthorized completion is usually treated as an alteration or a defect in authority and not a typical real defense against a HDC.
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