Legal Definitions - real defense

A real defense refers to a fundamental legal reason that makes a contract or a promise to pay (such as a check or a promissory note) completely unenforceable, even against an innocent third party who acquired it without knowing about the problem. These defenses are considered so serious that they essentially void the underlying obligation from its very beginning, meaning the person who is supposedly obligated to pay never truly had a valid legal duty.

Here are some examples to illustrate this concept:

• Forgery of a Signature:
  • Scenario: Imagine a situation where someone named Alex steals a blank check from Brenda's checkbook. Alex then forges Brenda's signature on the check, making it payable to himself for $500. Alex then uses this forged check to buy groceries from a local store, which accepts the check in good faith.
  • Explanation: When the grocery store tries to deposit the check, Brenda can assert forgery as a real defense. Because her signature was forged, she never authorized the payment, and the check is legally void as far as she is concerned. Even though the grocery store was an innocent party (a "holder in due course" in legal terms), Brenda is not obligated to pay because the fundamental act of signing, which creates the obligation, never occurred.
• Extreme Duress or Coercion:
  • Scenario: Suppose a criminal holds a gun to David's head and forces him to sign a promissory note, promising to pay $10,000 to a third party. The criminal then sells this note to an unsuspecting investor who believes it's a legitimate debt.
  • Explanation: David can use the extreme duress as a real defense against the investor. His signature was obtained under such severe threat that it negates his free will and consent, making the promissory note void from the outset. The law recognizes that a promise made under such extreme coercion is not a true legal obligation, and therefore, David is not required to pay, even to an innocent investor.
• Legal Incapacity (e.g., Minority):
  • Scenario: Sarah, who is 16 years old (a minor in most jurisdictions), signs a contract to purchase a non-essential luxury item, like a high-end gaming computer, from an electronics store. She pays with a promissory note. The store then sells this promissory note to a finance company.
  • Explanation: Sarah can assert her minority (being underage) as a real defense against the finance company. In many legal systems, contracts entered into by minors for non-necessities are voidable by the minor. This means that because Sarah lacked the full legal capacity to enter into such a contract, her promise to pay is not legally binding, even to an innocent third party like the finance company. The fundamental lack of capacity makes the obligation unenforceable.