The maker of a negotiable instrument is able to defend against a holder in due course in the event of:
Correct Answer
B) incapacity.
Limited defenses can be raised against a holder in due course, like fraud in the factum.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Eminent domain is the government's constitutional right to take private property for public use, provided the owner receives just compensation. It is also known as condemnation.
An encroachment occurs when a building, structure, or improvement illegally extends onto another person's property or beyond a setback line. It is a physical intrusion, not a right to use the land.
An environmental impact statement (EIS) is a detailed report required for major federal projects or actions that may significantly affect the environment. It is mandated by the National Environmental Policy Act (NEPA).
More Property Ownership Land Use Controls Questions
Which of the following words is NOT associated with the others in the group?
An owner sold a parcel of real estate to a buyer with the stipulation that the buyer was not allowed to sell alcohol from the premises. The buyer sold the property 10 years later to a buyer who converted the building into a convenience store that sold beer. Should the owner or owner’s heirs claim a right of re-entry, what would be the basis for the lawsuit?
The highest form of property ownership in the United States is:
In California, which form of co-ownership is available ONLY to married couples or registered domestic partners?
A developer in California proposes building in an area designated as a 'special flood hazard area' on the FEMA flood map. Under California law, what additional requirement applies to development in this area?
- → A California city enacts a zoning ordinance that eliminates all economically beneficial use of a private property. The owner files a takings claim. Which of the following correctly states the city's legal obligation?
- → Fee simple is all of the following EXCEPT
- → Under California law, which of the following correctly describes how a county may ultimately collect chronically unpaid property taxes on a privately owned parcel?
- → A residence that has 6” x 6” posts set four feet apart instead of 2” x 4” studs is an example of construction.
- → In a building, ceiling tiles that drop into a metal frame are considered
- → A deed restriction prohibits a subdivision from using a residential property as a business. A buyer interested in purchasing a property in the subdivision tells their broker they intend to use one room of their house as a dog grooming service. Can the buyer do so?
- → In California, a rancher with appropriative water rights began diverting water from a river in 1990. A newer appropriator began diverting from the same river in 2010. During a drought, the river cannot supply both users. Under California's appropriative rights system, who has priority?
- → Tom and Sarah are married and live in California. Before their marriage, Tom purchased a rental property using only his separate funds. During the marriage, Sarah managed the property and made improvements using community funds. In a divorce proceeding, how would a California court MOST likely classify this property?
- → Under California law, a married couple holds their home as joint tenants. Without the other spouse's knowledge, one spouse conveys their interest to themselves as a tenant in common using a grant deed. Under the ruling in Riddle v. Harmon, what is the effect?
- → A title search on a California property reveals that the parcel traces back to a confirmed Mexican land grant. The current owner claims the original grantee's mineral rights were never separately conveyed and therefore still run with the title. Which statement most accurately describes the legal status of those mineral rights under California law?
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