Question

Fraud in factum: Group of answer choices occurs when a person is persuaded to execute an instrument because of fraudulent statements. occurs when a person signs an instrument as a result of being fraudulently deceived regarding essential terms. is not a universal defense. cannot be raised against a holder in due course.

Answer 1

B. occurs when a person signs an instrument as a result of being fraudulently deceived regarding essential terms.

Step-by-step explanation:

Fraud in the factum a form of fraud when misrepresentation occurs and causes a person to enter into a transaction without clearly knowing the risks, duties, obligations acquired.

It occurs when a person signs a legal agreement and the legal instrument executed is different from the one intended, and the person who is been frauded does not get an opportunity to know about the fraudulent nature of the agreement.

Therefore, option B is correct.