real defense

Definition of "real defense"
  1. A valid objection that a person liable on a legally binding document (like a check or note) can raise even against someone who has obtained it in good faith
How to use "real defense" in a sentence
  1. Despite the contract being sold to an unrelated third party, the obligor could still raise a real defense.
  2. The bank insisted on real defense when the payment of the promissory note was questioned.
  3. Regardless of the validity of the other party's acquisition of the negotiable instrument, a real defense can still be asserted.

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