[nib]

hello friends ,

how to remember which are real defenses and which are personal defenses .

[Anonymous]

Real Defenses that may be asserted against both HDC and non-HDC transferees:
10 [FAIDS x 2]
F – Fraud in the execution
F – Forgery
A – Adjudicated Insanity
A – Alteration (Material) of the instrument
I – Infancy
I – Illegality
D – Duress if it made a contract void
D – Discharge in bankruptcy and other discharges known to the HDC
S – Suretyship Defenses
S – Statute of limitations has run (generally 3 years after dishonor or acceptance on drafts and 6 years after demand or other due date on notes)

Types of personal defenses
11 [BUMP-IINDUCT]
B – Breach of contract
U – Unauthorized completion of an instrument
M – Mental Incapacity (state law declares the transaction voidable)
P – Prior Payment
—
I – Illegality
I – Inducement-fraud
N – Nondelivery; Nonperformance of services
D – Duress-ordinary
U – Undue influence
C – Lack or failure of consideration
T – Theft

Note: “Illegality” may be classified as a real or personal defense depending in the situation. I've seen how it varies from a few MCQs from Becker and NINJA.

[nib]

thanks amor d

[Skynet]

Real Defense – You and your wife or girlfriend are out on Dinner at a restaurant. She catches you checking out the Hot Waitress by looking up her blouse. You claim though that it was unintentional because she was leaning over the table to place the bread basket in the middle of the table ; )

Personal Defense – You block all the utensils and the basket of bread that she throws in your face for checking out the Hot Waitress.

[Author]

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