A restaurant owner granted an unsecured note to a supplier. The supplier demanded a deed of trust as security, and the owner signed under duress. The owner later sold the restaurant to the chef, who assumed the note. Which statement about the chef’s ability to assert the owner’s duress defense is correct?

A restaurant owner granted an unsecured note to a supplier. The supplier demanded a deed of trust as security, and the owner signed under duress. The owner later sold the restaurant to the chef, who assumed the note. Which statement about the chef’s ability to assert the owner’s duress defense is correct?

• A. The chef may assert the owner’s duress defense against enforcement of the note.
• B. The chef cannot assert the owner’s duress defense against enforcement of the note.
• C. The chef may rescind the transaction due to the duress.
• D. The chef’s assumption of the deed of trust nullifies the deed.

Answer: (B)