Asked by Misael Aneuris on May 02, 2024
Verified
References to other agreements in negotiable instruments:
A) destroy negotiability unless the recital makes the instrument subject to, or governed by, the terms of another agreement.
B) do not destroy negotiability in any circumstances.
C) do not destroy negotiability unless the recital makes the instrument subject to or governed by the terms of another agreement.
D) destroy negotiability in all circumstances.
Negotiability
The characteristic of a document, such as a check or bill of exchange, that allows it to be transferred or endorsed from one party to another in legal transactions.
Other Agreements
Pertains to additional contracts or understandings between parties that are separate from the main agreement.
Recital
In legal terms, a recital refers to a narrative or introductory part of a legal document that outlines the background information or context.
- Investigate the implications of conditions, references to supplementary agreements, and undefined payment schedules on the negotiability of instruments.
Verified Answer
KB
Kassi BrightMay 06, 2024
Final Answer :
C
Explanation :
References to other agreements in negotiable instruments do not destroy their negotiability unless the instrument explicitly states that it is subject to or governed by the terms of another agreement. This allows for the inclusion of references to other agreements for informational purposes without affecting the negotiability of the instrument.
Learning Objectives
- Investigate the implications of conditions, references to supplementary agreements, and undefined payment schedules on the negotiability of instruments.