Defective Title [Negotiable Instruments] Law and Legal Definition

The title of a person negotiating a negotiable instrument is said to be defective if:

a. s/he obtained the instrument, or any signature thereto, by fraud, duress, force, fear, or for other unlawful means, or for an illegal consideration; or

b. s/he negotiates it in breach of faith or under such circumstances as to amount to a fraud.