real defense
- 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
- Despite the contract being sold to an unrelated third party, the obligor could still raise a real defense.
- The bank insisted on real defense when the payment of the promissory note was questioned.
- 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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