Final answer:
Failure of consideration is a personal defense indicating promised performance wasn't provided, while lack of consideration is a real defense indicating no obligation for performance was present. The correct statement is that failure of consideration is a personal defense and lack of consideration is a real defense.
Step-by-step explanation:
The distinction between "failure of consideration" and "lack of consideration" is an important one in the context of negotiable instruments. Failure of consideration typically refers to a situation where the performance that was promised in a contract has not been provided or has partially failed, making it a personal defense. On the other hand, a lack of consideration means that there was no obligation to provide performance in the first place, which is a real defense. Considering these definitions, the correct statement is that failure of consideration is a personal defense and lack of consideration is a real defense. This means that a real defense can be used against all holders of the instrument, including holders in due course, whereas a personal defense can only be used against holders who are not holders in due course.