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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Chapter 27 Defenses & Limitations 1

Chapter 27 Defenses & Limitations 1

Q 1) Please distinguish between the legal effect of a personal defense and a universal defense. see Exhibit 27-2 on page 507 for a summary of these defenses. 2) Disinguish between fraud in the inducement and fraud in the execution of the instrument. 3) Distinguish between a material alteration and an unauthorized completion of an instrument.

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A personal defense cannot be raised against a Holder in Due Course (HDC) of a negotiable instrument. This is because a personal defense can only be raised against an ordinary holder of a negotiable instrument (Clarkson, Miller & Cross, 2016). The negotiable instrument has to be enforced by a holder so that the instrument and the holder can be eligible for raising a personal defense against. Self-defense is associated with personal defense. This is because if there is any case of aggression or physical violence shown by any of the parties involved in the enforcement of a negotiable instrument, a personal defense can be raised against the holder.