Limited Defense Law and Legal Definition

Limited defense refers to an ordinary defense in a contract action. Examples are the failure of consideration or non performance of a condition. A drawer or maker of a negotiable instrument is precluded from raising a limited defense against a holder in due course.

Limited defenses to a foreclosure action are: payment, discharge, release or satisfaction, accident, mistake or fraud, abandonment of Security, and Usury. [City of Stamford v. Daddona, 1994 Conn. Super. LEXIS 2785 (Conn. Super. Ct. 1994)]