Real defense

Definition
: a defense of an obligor of a negotiable instrument that may be asserted even against a holder in due course
Section 3-305(a)(1) of the Uniform Commercial Code sets out the real defenses as infancy, duress, lack of legal capacity, illegality of the transaction, fraud in the factum, and discharge of the obligor by a bankruptcy court. By exclusion, all other defenses are personal defenses.
3  : the defending side in a legal proceeding <the ~ rests>
compare prosecution



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Based on Merriam-Webster's Dictionary of Law ©2001.
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