Study each of the following cases carefully. Briefly state the principle of law and your decision.
Personal Defense Poulakis sold a computer using fraudulent means to Welson, who paid for the machine with a promissory note for $1,200. When Welson discovered the fraud, she refused to honor the note when it was presented for payment by a subsequent holder. Welson claimed fraud as a defense. Will Welson succeed in avoiding payment to a holder in due course?
Principle of Law:
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Decision:
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