A negotiation is void if the transaction in which it occurs is void.

Question

Quizplus · Accepted Answer

A negotiation itself is not automatically void if the transaction in which it occurs is void. The validity of a negotiation depends on the specific circumstances and legal principles applicable to the transaction, such as the negotiability of the instrument, the rights of the parties involved, and the presence of any fraud or illegality. A transaction can be void for certain reasons, but the negotiation of a negotiable instrument within that transaction might still be valid if it meets the requirements set forth by law, especially in cases where the negotiator or holder in due course has rights that are protected by law.

A Negotiation Is Void If the Transaction in Which It