Asked by Maria Clara Mejia on Jul 27, 2024
Verified
A negotiation to transfer an instrument cannot be effective if it is made by a person without contractual capacity.
Contractual Capacity
The legal ability to enter into a binding contract, typically requiring parties to be of a certain age and sound mind.
Negotiation
The process whereby two or more parties discuss and attempt to reach a mutual agreement on matters of common interest.
- Discern the effect of invalid signatures and fake documents on the transfer and legal authority of negotiable instruments.
Verified Answer
ME
marcella evansJul 31, 2024
Final Answer :
False
Explanation :
Negotiation of an instrument can still be effective even if made by a person without contractual capacity, as the validity of the negotiation does not depend on the capacity of the negotiator but on the transfer of rights according to the terms of the instrument.
Learning Objectives
- Discern the effect of invalid signatures and fake documents on the transfer and legal authority of negotiable instruments.
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