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Defenses Against a Holder of a Negotiable Instrument

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Provide four personal defenses that a person can raise against a holder of a negotiable instrument. What type of documentary proof do you think you would need to get to provide proof to those claims if you were arguing them?

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The solution discusses about the four defenses against a holder of a negotiable instrument. References are included.

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Personal defenses can be raised against a holder of a negotiable instrument for the purpose of avoiding payment to the ordinary holder. However, it only holds true to the holder of the instrument but it cannot be made applicable to the holder in due course or a holder with the rights of a holder in due course. The following are examples of personal defenses:

? Breach of Contract or Warranty: When there is a problem or breach of the underlying contract that has caused the negotiable instrument to be issued, the maker of the note may not pay it or the drawer of the check can stop payment by ordering the bank. It can also be claimed as a defense to a liability on an instrument. In claiming for damages, the required level of proof is the quantification of damages. Appropriate records on claims that have been document must have been kept during the execution of relevant work. ...

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